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Full text of "San Francisco Administrative Code, Part 3"

CITY AND COUNTY OF 

SAN FRANCISCO 

MUNICIPAL CODE 



ADMINISTRATIVE CODE 



VOLUME III 




¥ 



MUNICIPAL CODE CORPORATION 



Tallahassee, Florida 



2006 



ADMINISTRATIVE CODE 
TABLE OF CONTENTS 

Chapter Page 

VOLUME ONE 

1. General Provisions 7 

2. Board of Supervisors 43 

2A. Executive Branch 175 

2B. Assessment Appeals Boards (Tax Appeal Boards) 441 

3. Budget Procedures 473 

4. City Buildings, Equipment and Vehicles 501 

5. Committees 525 

6. Public Works Contracting Policies and Procedures 847 

7. Disaster Council 951 

8. Documents, Records and Publications 981 

9A. Farmers' Market 1031 

9B. Flea Market 1055 

10. Finance, Taxation and Other Fiscal Matters 1065 

lOA. Pilot Foot Patrol Program 1457 

lOB. Special Law Enforcement and Public Works Services 1467 

IOC. Reimbursement for Towing and Storage of Vehicles 1485 

lOD. [Reserved] 1509 

lOE. Downtown Plan Monitoring 1519 

lOF. 1660 Mission Street Surcharge 1543 

lOG. Board of Appeals Surcharge for Permits and Fees 1561 

lOH. Recovery of Costs of Emergency Response 1583 

VOLUME TWO 

11. Franchises 1691 

12. Housing Authority 1801 

12A. Human Rights Commission 1813 

12B. Nondiscrimination in Contracts 1833 

12C. Nondiscrimination in Property Contracts 1859 

12D. MinorityAVomen/Local Business Utilization 1877 



111:1 Supp. No. 12, November/December 2007 



San Francisco - Administrative Code 111:2 

Chapter Page 

12E. City Employee's Sexual Privacy Ordinance 2001 

12F. Implementing the MacBride Principles — Northern Ireland 2009 

12G. Prohibition on Use of Public Funds for Political Activity by 

Recipients of City Contracts, Grants, and Loans 2023 

12H. Immigration Status 2031 

121. [Reserved] 2043 

12J. City Business with Burma Prohibited 2053 

12K. Local Implementation of the United Nations Convention on the 
Elimination of All Forms of Discrimination Against Women 

(CEDAW) 2075 

12L. Public Access to Records and Meetings of Nonprofit Organizations . . 2095 

12M. Protection of Private Information 2109 

12N. Lesbian, Gay, Bisexual, Transgender, Queer, and Questioning Youth: 

Youth Services Sensitivity Training 2119 

120. Earned Income Credit Information 2129 

12P. Minimum Compensation 2139 

12Q. Health Care Accountability 2163 

12R. Minimum Wage 2187 

12S. Working Families Credit Program 2199 

12T. [Reserved] 2209 

12U. Sweatfree Contracting 2219 

12V. Personal Services Minimum Contractual Rate Ordinances 2227 

12W. Sick Leave 2231 

12X. Policy Making Marijuana Offenses the Lowest Law^ Enforcement 

Priority 2235 

12Y. San Francisco Slavery Disclosure Ordinance 2236.5 

13. Jails and Prisoners 2237 

14. San Francisco Health Care Security Ordinance 2295 

14A. Disadvantaged Business Enterprise Program 2305 

14B. Local Business Enterprise and Non-Discrimination in Contracting 

Ordinance 2329 

15. Mental Health Service 2341 

16. Officers and Employees Generally 2361 

17. Public Off-Street Parking Facilities 2719 



Supp. No. 12, November/December 2007 



111:3 Table of Contents 

Chapter Page 

18. Payroll Procedure 2755 

19. Community Safety Camera Ordinance 2769 

19A. Public Health 2779 

20. Social Services 2799 

21. Acquisition of Commodities and Services 3023 

21A. [Reserved] 3087 

21B. [Reserved] 3097 

21C. Price Adjustments in the Award of City Procurement Contracts to 

Reflect Direct Sales Tax and Business Tax Revenues for the City, the 
San Francisco Unified School District, the San Francisco 
Community College District, and the San Francisco Transportation 

Authority 3105 

21D. [Reserved] , 3113 

21E. [Reserved] 3123 

21F. [Reserved] 3133 

21G. [Reserved] 3143 

22. Radio Communication Facilities 3153 

22A. [Reserved] 3159 

22B. Telecommunications Facilities 3169 

22C. Public Internet Access 3177 

23. Real Property Transactions 3187 

23A. Surplus City Property Ordinance 3275 

24. Redevelopment Agency 3301 

24A. Administrative Structure Local Rent Supplement Program in the 

Office of Mayor 3315 

24B. Relocation Appeals Board 3337 

25. Street Lighting 3353 

26. Deemed Approved Off-Street Alcohol Use Nuisance Regulations 3363 

27. [Reserved] 3373 

28. Administrative Debarment Procedure 3383 

29. Findings of Fiscal Responsibility and Feasibility 3395 

30. Centralization of Workforce Development 3409 

VOLUME THREE 

31. California Environmental Quality Act Procedures and Fees 3425 



Supp. No. 12, November/December 2007 



San Francisco - Administrative Code 111:4 

Chapter Page 

32. Residential Rehabilitation Loan Program 3503 

33. Commission on the Status of Women 3597 

34. Notification to Assessor Concerning Zoning Reclassifications of 
Property, Conditional Use Permits and Variances 3613 

35. Residential and Industrial Compatibility and Protection Ordinance . 3635 

36. Community Improvements Area Plans and Programs; 3645 

37. Residential Rent Stabilization and Arbitration Ordinance 3655 

37A. Residential Rent Stabilization and Arbitration Fee 3717 

38. Transit Impact Development Fee 3729 

39. [Reserved] 3761 

40. Housing Code Enforcement Loan Program 3771 

41. Residential Hotel Unit Conversion and Demolition 3859 

41A. Apartment Unit Conversion Ordinance 3901 

41B. [Reserved] 3917 

41C. Time-Share Conversion Ordinance 3927 

41D. Residential Hotel Visitor Policies 3935 

41E. Residential Hotel Mail Receptacle Ordinance 3949 

41F. Tourist Hotel Conversion 3959 

42. Industrial Development Authority 3967 

43. Municipal Finance Law 3979 

44. Adult Day Health Care Planning Council 4071 

45. Jury Fees 4079 

46. [Reserved] 4089 

47. [Reserved] 4099 

48. [Reserved] 4109 

49. Security Deposits for Residential Rental Property 4119 

49A. Residential Tenant Communications 4131 

49B. Residential Rental Units: Lock Replacements by Landlord When 

Tenants Vacate 4141 

50. Nonprofit Performing Arts Loan Program 4151 

51. Voluntary Arts Contributions Program 4197 

52. [Reserved] 4203 

53. [Reserved] 4213 



Supp. No. 12, November/December 2007 



111:5 Table of Contents 

Chapter Page 

54. Southeast Community Facility Commission 4223 

55. [Reserved] 4237 

56. Development Agreements 4247 

57. Film Commission 4283 

58. [Reserved] 4291 

59. [Reserved] 4301 

60. Assisted Housing Preservation Ordinance 4311 

61 . Waterfront Land Use 4355 

62. Domestic Partnerships 4371 

63. Limitations on Water Use for Landscaping in New Developments 

and Landscaping Renovations 4387 

64. City Employee and City Contractor Safety and Health 4399 

65. Rent Reduction and Relocation Plan For Tenants Inconvenienced 
by Seismic Work Performed Pursuant to Chapters 14 and 15 of the 

San Francisco Building Code 4409 

66. Seismic Safety Retrofit Program 4417 

66A. Seismic Safety Loan Program 4427 

67. The San Francisco Sunshine Ordinance of 1999 4451 

67A. Cell Phones, Pagers and Similar Sound-Producing Electrical De- 
vices 4523 

68. Cultural Equity Endowment Fund 4531 

69. San Francisco Health Authority 4547 

70. In-Home Supportive Services Public Authority 4559 

71. Mills Act Contract Procedures 4573 

72. Relocation Assistance for Lead Hazard Remediation 4587 

73. [Reserved] 4611 

74. Rent Escrow Account Program 4621 

75. [Reserved] 4639 

76. [Reserved] 4649 

77. Building Inspection Commission Appeals 4659 

78. Department of Building Inspection Permit Tracking System 4675 

79. Preapproval Notice for Certain City Projects 4683 

80. [Reserved] 4697 



Supp. No. 16, April 2008 



San Francisco - Administrative Code 111:6 

Chapter Page 

81. [Reserved] 4707 

82. [Reserved] 4717 

83. First Source Hiring Program 4727 

84. San Francisco Residential Rent Assistance Program for Persons Dis- 
qualified from Federal Rent Subsidy Programs by the Federal Qual- 
ity Housing and Work Responsibility Act of 1998 (QHWRA) 4755 

85. [Reserved] 4769 

86. Children and Families First Commission 4779 

87. Fair Housing Implementation Ordinance 4791 

88. Performance and Review Ordinance of 1999 4801 

89. Department of Child Support Services 4815 

VOLUME FOUR 

90. Entertainment Commission 4823 

91. Equal Access to Services 4837 

92. Real Estate Loan Counseling and Education 4851 

93. [Reserved] 4863 

94. [Reserved] 4873 

95. Identification Cards 4883 

96. Coordination between the Police Department and the Office of Citi- 
zen Complaints 4895 

97. Healthcare Impact Reports 4909 

98. The Better Streets Policy 4915 

99. Public Power in New City Developments 4919 

100. Procedures Governing the Imposition of Administrative Fines 4920.1 

Appendices: Initiative Ordinances 4921 

Index 6299 



Supp. No. 16, April 2008 



CHAPTER 31: CALIFORNIA ENVIRONMENTAL QUALITY 
ACT PROCEDURES AND FEES 

Article Page 

L GENERAL PROVISIONS 3427 

IL PROJECTS COVERED 3439 

m. EVALUATIONS 3449 

IV. FEES 3471 

V. SEVERABILITY 3483 

APPENDIX 3493 



3425 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE I: GENERAL PROVISIONS 



Sec. 31.01. Authority and Mandate. 

Sec. 31.02. Policies and Objectives. 

Sec. 31.03. Scope of Requirements. 

Sec. 31.04. Responsibility. 

Sec. 31.05. Office of Environmental Review. 

Editor's Note: 

Ordinance 40-01, File No. 001007, App. 3/16/2001 
repealed former Chapter 31 in its entirety. Most of the 
provisions set forth in this chapter are similar to but not 
identical to or derivative from those repealed provi- 
sions. The Code user should therefore consult the 
derivation and disposition tables set forth as an appen- 
dix to this chapter for corresponding provisions. The 
legislative history of the former Code Sections can then 
be located in their numerical sequence in the text of 
each article. 



SEC. 31.01. 
MANDATE. 



AUTHORITY AND 



(a) This Chapter is adopted pursuant to the 
California Environmental Quality Act, Public 
Resources Code Sections 21000 and following, as 
amended; and pursuant to the Guidelines for 
Implementation of the California Environmental 
Quality Act, as amended, appearing as Title 14, 
Division 6, Chapter 3 of the California Code of 
Regulations (hereinafter referred to collectively 
as CEQA). CEQA provides for the orderly evalu- 
ation of projects and preparation of environmen- 
tal documents, and requires adoption of corre- 
sponding objectives, criteria and procedures by 
local agencies. 

(b) Any amendments to CEQA adopted sub- 
sequent to the effective date of this Chapter 31 
shall not invalidate any provision of this Chapter 
31. Any amendments to CEQA that may be 
inconsistent with this Chapter 31 shall govern 
until such time as this Chapter 31 may be 
amended to remove such inconsistency. 

(c) This Chapter shall govern in relation to 
all other ordinances of the City of San Francisco 
("City") and rules and regulations pursuant 
thereto. In the event of any inconsistency con- 



cerning either public or private actions, the pro- 
visions of this Chapter shall prevail. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 
(Former Sec. 31.01; amended by Ord. 92-77, App. 
3/18/77; repealed by Ord. 40-01) 

SEC. 31.02. POLICIES AND 
OBJECTIVB]S. 

The basic purposes of CEQA and this Chap- 
ter 31 are to: 

(a) Provide decision makers and the public 
with meanin^^ul information regarding the en- 
vironmental consequences of proposed activities. 

(b) Identify ways that environmental dam- 
age can be avoided or significantly reduced. 

(c) Provide for public input in the environ- 
mental review process. 

(d) Bring environmental considerations to 
bear at an early stage of the planning process, 
and to avoid unnecessary delays or undue com- 
plexity of review. Simplicity and directness are to 
be emphasized, with the type of review related to 
the depth and variety of environmental issues 
raised by a project, so that government and 
public concern may be focused upon environmen- 
tal effects of true significance. 

(e) Provide procedural direction on imple- 
mentation of CEQA by the City. 

(f) Prevent significant avoidable damage to 
the environment by requiring changes in projects 
through the use of alternatives or mitigation 
measures when the government agency finds the 
changes to be feasible. 

(g) Disclose to the public the reasons why a 
governmental agency approved the project in the 
manner the agency chose if significant environ- 
mental effects are involved (Added by Ord. 40- 
01, File No. 001007, App. 3/16/2001) (Former 
Sec. 31.02; amended by Ord. 92-77, App. 3/18/77; 
repealed by Ord. 40-01) 



3427 



Supp. No. 10, July/August 2007 



Sec. 31.03. 



San Francisco - Administrative Code 



3428 



SEC. 31.03. SCOPE OF REQUIREMENTS. 

(a) This Chapter adapts CEQA for use by 
the City. The emphasis of this Chapter is upon 
implementing procedures, which are expressly 
left for determination by local agencies, consis- 
tent with CEQA. 

(b) The provisions of CEQA are not re- 
peated here, but are expressly incorporated herein 
by reference as though fully set forth. This 
Chapter is supplementary to CEQA. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 
(Former Sec. 31.03; added by Ord. 134-73, App. 
4/11/73; repealed by Ord. 40-01) 

SEC. 31.04. RESPONSIBILITY. 

(a) The City and all its officials, boards, 
commissions, departments, bureaus and offices 
shall constitute a single "local agency," "public 
agency" or "lead agency" as those terms are used 
in CEQA; except that the San Francisco Rede- 
velopment Agency shall be a separate "local 
agency" or "public agency" as specified in CEQA. 
With regard to establishment of any redevelop- 
ment area, the City shall be the "lead agency." 

(b) The administrative actions required by 
CEQA with respect to the preparation of envi- 
ronmental documents, giving of notice and other 
activities, as specified in this Chapter, shall be 
performed by the San Francisco Planning De- 
partment as provided herein, acting for the City. 

(c) Where adoption of administrative regu- 
lations by resolution of the Planning Commis- 
sion after public hearing is specified herein, 
there shall be notice by publication in a newspa- 
per of general circulation in the City at least 
twenty (20) days prior to the hearing and by 
posting in the offices of the Planning Depart- 
ment, with copies of the proposed regulations 
sent to the Board of Supervisors and any other 
affected boards, commissions and departments 
of the City and to all organizations and individu- 
als who have previously requested such notice in 
writing. The decision of the Commission in adopt- 
ing administrative regulations shall be final. 

(d) The City shall be responsible for conduct- 
ing environmental review for projects under- 
taken by the City within the City's territorial 



limits and for projects undertaken by the City 
outside the territorial limits of the City. (Added 
by Ord. 40-01, File No. 001007, App. 3/16/2001; 
amended by Ord. 186-02, File No. 021418, App. 
9/6/2002; Ord. 218-02, File No. 021609, App. 
11/1/2002; Amended by Ord. 168-07, File No. 
061537, App. 7/20/2007) (Former Sec. 31.04; 
amended by Ord. 166-74, App. 4/11/74; repealed 
by Ord. 40-01) 

SEC. 31.05. OFFICE OF 
ENVIRONMENTAL REVIEW. 

(a) An Office of Environmental Review is 
hereby created in the Planning Department, 
which shall be responsible, acting through the 
Director of Planning, for the administration of 
this Chapter 31. 

(b) Said office shall be under the direction 
of an Environmental Review Officer, who shall 
supervise the staff members of the office and 
have charge of the collection of fees by the office. 
The Environmental Review Officer shall report 
to, and coordinate and consult with, the Director 
of Planning. 

(c) In addition to the powers and duties 
conferred below, the Environmental Review Of- 
ficer may, upon delegation by the Planning Com- 
mission as to specific projects, take testimony at 
supplemental public hearings on draft environ- 
mental impact reports, in addition to, and not in 
lieu of, the hearing held by the Planning Com- 
mission as set forth in section 31.14 of this 
Chapter, and shall report to, and make all such 
testimony available to, the Planning Commis- 
sion at a public hearing. 

(d) The Environmental Review Officer shall 
also take such measures, within his or her pow- 
ers, as may be necessary to assure compliance 
with this Chapter 31 by persons outside the 
Planning Department, and shall periodically re- 
view the effectiveness and workability of the 
provisions of this Chapter 31 and recommend 
any refinements or changes that he or she may 
deem appropriate for improvement of such pro- 
visions. 



Supp. No. 10, July/August 2007 



3429 



California Environmental Quality Act 
Procedures and Fees - General Provisions 



Sec. 31.05. 



(e) All projects that are not excluded or 
categorically exempt from CEQA shall be re- 
ferred to the Environmental Review Officer. All 
other officials, boards, commissions, depart- 
ments, bureaus and offices of the City shall 
cooperate with the Environmental Review Of- 
ficer in the exercise of his/her responsibilities, 
and shall supply necessary information, consul- 
tations and comments. 

(f) The Environmental Review Officer shall 
be responsible for assuring that the City is 
carrying out its responsibilities set forth in CEQA. 
In addition, when the City is to carry out or 
approve a project and some other public agency 
is the "lead agency," as defined by CEQA, and 
where projects are to be carried out or approved 
by the State and Federal governments, the En- 
vironmental Review Officer shall provide consul- 
tation and comments for the City to the other 
government agencies when appropriate. 

(g) To the extent feasible, the Environmen- 
tal Review Officer shall combine the evaluation 
of projects, preparation of environmental impact 
reports and conduct of hearings with other plan- 
ning processes; and shall coordinate environmen- 
tal review with the Capital Improvement Pro- 
gram, the San Francisco General Plan and the 
San Francisco Planning Code. 

(h) Adoption and/or revision of administra- 
tive regulations to implement CEQA shall be by 
resolution of the Planning Commission after a 
public hearing. The Environmental Review Of- 
ficer may adopt necessary forms, checklists and 
processing guidelines to implement CEQA and 
this Chapter 31 without a public hearing. 

(i) Upon prior authorization by the Plan- 
ning Commission, the Environmental Review 
Officer may attend hearings and testify on mat- 
ters related to CEQA before governmental orga- 
nizations and agencies other than governmental 
agencies of the City and County of San Francisco 
and may advocate on behalf of the City on 
matters related to CEQA. 

(j) The Environmental Review Officer may 
provide information to other governmental or 
environmental organizations and members of 
the public. 



(k) The Environmental Review Oflficer may 
delegate his or her responsibilities to an em- 
ployee of the Office of Environmental Review. All 
references herein to the Environmental Review 
Officer shall be deemed to include the Environ- 
mental Review Officer's delegate. (Added by Ord. 
40-01, File No. 001007, App. 3/16/2001) (Former 
Sec. 31.05; amended by Ord. 166-74, App. 4/11/ 
74) 



[The next page is 3439] 



Supp. No. 10, July/August 2007 



[INTENTIONALLY LEFT BLANK] 



Supp. No. 10, July/August 2007 



ARTICLE II: PROJECTS COVERED 



Sec. 31.06. Coverage of State Law. 
Sec. 31.07. Listing of Non-Physical and 

Ministerial Projects. 
Sec. 31.08. Categorical Exemptions. 
Editor's Note: 

Ordinance 40-01, File No. 001007, App. 3/16/2001 
repealed former Chapter 31 in its entirety. Most of the 
provisions set forth in this chapter are similar to but not 
identical to or derivative from those repealed provi- 
sions. The Code user should therefore consult the 
derivation and disposition tables set forth as an appen- 
dix to this chapter for corresponding provisions. The 
legislative history of the former Code Sections can then 
be located in their numerical sequence in the text of 
each article. 

SEC. 31.06. COVERAGE OF STATE LAW. 

CEQA provides that certain kinds of projects 
may be subject to CEQA. Some of these projects 
may be excluded or categorically exempt from 
CEQA. If not excluded or categorically exempt, 
CEQA provides a process whereby an initial 
study is completed, then a determination is made 
as to whether a negative declaration or an envi- 
ronmental impact report ("EIR") should be pre- 
pared. In accordance with the requirements of 
CEQA and as specified herein, the Planning 
Commission and/or the Environmental Review 
Officer shall determine when CEQA applies to a 
project, when the project is excluded or exempt, 
or when a negative declaration or environmental 
impact report is required. (Added by Ord. 40-01, 
File No. 001007, App. 3/16/2001) 

SEC. 31.07. LISTING OF NON-PHYSICAL 
AND MINISTERIAL PROJECTS. 

(a) The Environmental Review Officer shall 
maintain a listing of types of nonphysical and 
ministerial projects excluded from CEQA. Such 
listing shall be modified over time as the status 
of types of projects may change under applicable 
laws, ordinances, rules and regulations. The 
listing shall not be considered totally inclusive, 
and may at times require refinement or interpre- 



tation on a case-by-case basis. When the Envi- 
ronmental Review Officer proposes to modify 
such listing, notice shall be provided on the 
Planning Commission agenda prior to such modi- 
fication. Any person who may consider amy modi- 
fication to be incorrect may appeal such modifi- 
cation to the Planning Commission within twenty 
(20) days of the date of the Planning Commission 
agenda on which notice of such modification was 
posted. The Planning Commission may affirm, 
modify or disapprove such modification, and the 
decision of the Planning Commission shall be 
final. 

(b) Such listing of excluded projects and 
modifications thereto shall be kept posted in the 
offices of the Planning Department, and copies 
thereof shall be sent to the Board of Supervisors 
and all other affected boards, commissions and 
departments of the City. (Added by Ord. 40-01, 
File No. 001007, App. 3/16/2001) 

SEC. 31.08. CATEGORICAL 
EXEMPTIONS. 

(a) CEQA provides that certain classes of 
projects generally do not have a significant effect 
on the environment and therefore are categori- 
cally exempt from CEQA. Each public agency 
must list the specific activities that fall within 
each such class, subject to the qualification that 
these lists must be consistent with both the 
letter and the intent of the classes set forth in 
CEQA. Except as provided in this section 31.08, 
projects that are categorically exempt are not 
subject to the requirements of this Chapter 31. 

(b) The Environmental Review Oflicer shall 
maintain the required list of types of projects 
which are categorically exempt, and such list 
shall be kept posted in the offices of the Planning 
Department. Such list shall be kept up to date in 
accordance with any changes in CEQA and any 
changes in the status of local projects. The initial 
list and any additions, deletions and modifica- 
tions thereto shall be adopted as administrative 



3439 



Sec. 31.08. 



San Francisco - Administrative Code 



3440 



regulations by resolution of the Planning Com- 
mission after public hearing, according to the 
procedure set forth in Section 31.04(c) of this 
Chapter. 

(c) CEQA provides for public agencies to 
request additions, deletions and modifications to 
the classes of projects listed as categorically 
exempt in CEQA. The Planning Commission 
shall make any such requests, after a public 
hearing thereon held according to the procedure 
specified in Section 31.04(c) of this Chapter for 
adoption of administrative regulations. 

(d) The Environmental Review Officer may 
adopt necessary forms, checklists and processing 
guidelines to aid the Planning Department and 
other departments in determining that a project 
may be categorically exempt in accordance with 
the letter and the intent expressed in the classes 
of categorical exemptions specified in CEQA and 
with the administrative regulations adopted by 
the Planning Commission. 

(e) The Environmental Review Officer shall 
advise other departments of the categorical ex- 
emptions. The Environmental Review Officer 
may delegate the determination whether a project 
is categorically exempt from CEQA to other 
departments, provided that other departments 
shall consult with the Environmental Review 
Officer regarding the application of the categori- 
cal exemptions, and provided further that the 
Environmental Review Officer shall be respon- 
sible for all determinations so delegated to other 
departments. 

(f) When the Environmental Review Of- 
ficer, or any other department to which the 
Environmental Review Officer has delegated re- 
sponsibility pursuant to Section 31.08(e) above, 
has determined that a project is excluded or 
categorically exempt from CEQA, notice to the 
public shall be provided for all such determina- 
tions involving the following types of projects: (1) 
any historical resources as defined in CEQA, 
including without limitation, any buildings and 
sites listed individually or located within dis- 
tricts listed (i) in Planning Code Articles 10 or 11, 
(ii) in City-recognized historical surveys, (iii) on 
the California Register, or (iv) on the National 



Register of Historic Places; (2) any Class 31 
categorical exemption; (3) any demolition of an 
existing structure; or, (4) any Class 32 categori- 
cal exemption. Written determinations of cat- 
egorical exemptions for these types of projects 
shall be posted in the offices of the Planning 
Department and shall be mailed to any individu- 
als or organizations that have previously re- 
quested such notice in writing. 

(g) When the Environmental Review Of- 
ficer, or any other department to which the 
Environmental Review Officer has delegated re- 
sponsibility pursuant to Section 31.08(e) above, 
has determined that a project is excluded or 
categorically exempt from CEQA, the Environ- 
mental Review Officer may issue a Certificate of 
Exemption from Environmental Review by post- 
ing a copy thereof in the offices of the Planning 
Department, and by mailing copies thereof to the 
applicant, the board(s), commission(s) or depart- 
ments) that will carry out or approve the project, 
and to any individuals or organizations who 
have previously requested such notice in writing. 

(h) The Planning Commission may take tes- 
timony on any categorical exemption at the pub- 
lic hearing, if any, in connection with the Plan- 
ning Commission's consideration of the project 
that is the subject of the categorical exemption. 
(Added by Ord. 40-01, File No. 001007, App. 
3/16/2001) 



[The next page is 3449] 



ARTICLE III: EVAI.UATIONS 



Sec. 31.09. Determination of Need for 

Evaluation. 
Sec. 31.10. Initial Evaluation of Projects. 
Sec. 31.11. Negative Declarations or 

Mitigated Negative 

Declarations. 
Sec. 31.12. Determinations that 

Environmental Impact Reports 

are Required. 
Sec. 31.13. Draft Environmental Impact 

Reports. 
Sec. 31.14. Consultations and Comments. 
Sec. 31.15. Final Environmental Impact 

Reports. 

Sec. 31.16. Appeal of Final Environmental 

Impact Reports. 
Sec. 31.17. Actions on Projects. 
Sec. 31.18. Additional Environmental 

Review. 
Sec. 31.19. Evaluation of Modified Projects. 
Sec. 31.20. Multiple Actions on Projects. 
Editor's Note: 

Ordinance 40-01, File No. 001007, App. 3/16/2001 
repealed former Chapter 31 in its entirety. Most of the 
provisions set forth in this chapter are similar to but not 
identical to or derivative from those repealed provi- 
sions. The Code user should therefore consult the 
derivation and disposition tables set forth as an appen- 
dix to this chapter for corresponding provisions. The 
legislative history of the former Code Sections can then 
be located in their numerical sequence in the text of 
each article. 

SEC. 31.09. DETERMINATION OF NEED 
FOR EVALUATION. 

All projects that are not statutorily excluded 
or categorically exempt from CEQA shall be 
referred to the Environmental Review Officer, 
prior to the decision as to whether to carry out or 
approve the project, for an initial study to estab- 
lish whether a negative declaration or an envi- 
ronmental impact report is required. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 



SEC. 31.10. INITIAL EVALUATION OF 
PROJECTS. 

(a) Upon receiving an environmental evalu- 
ation application for a project, or upon referral of 
a project by the board, commission or depart- 
ment that is to carry^ out or approve the project, 
the Environmental Review Officer shall deter- 
mine whether such project is exempt from envi- 
ronmental review. If not exempt, the Environ- 
mental Review Officer shall complete an initial 
study to determine the level of environmental 
analysis required. In the event it is clear at the 
outset that an environmental impact report is 
required, the Environmental Review Officer may, 
with the consent of the applicant, make an 
immediate determination and dispense with the 
initial study. Each environmental evaluation ap- 
plication or referral shall include a project de- 
scription using as its base the environmental 
information form set forth as Appendix H of the 
CEQA Guidelines, which form shall be supple- 
mented to require additional data and informa- 
tion applicable to a project's effects, including 
consistency with the environmental issues in- 
cluded in the Eight Priority Policies set forth in 
Section 101.1 of the Planning Code and incorpo- 
rated into the General Plan, shadow impacts, 
including the analysis set forth in Planning Code 
Section 295, and such other data and informa- 
tion specific to the urban environment of San 
Francisco or to the specific project. Each environ- 
mental evaluation application or referral shall 
be certified as true and correct by the applicant 
or referring board, commission or department. 
Each initial study shall include an identification 
of the environmental effects of a project using as 
its base the environmental checklist form set 
forth in Appendix G of the CEQA Guidelines and 
addressing each of the questions from the check- 
list form that are relevant to a project's environ- 
mental effects; provided that the checklist form 
shall be supplemented to address additional en- 
vironmental effects, including consistency with 



3449 



Supp. No. 1, September 2006 



Sec. 31.10. 



San Francisco - Administrative Code 



3450 



the environmental issues included in the Eight 
Priority Policies set forth in Section 101.1 of the 
Planning Code and incorporated into the Gen- 
eral Plan, shadow impacts, including the analy- 
sis set forth in Planning Code Section 295, and 
such other environmental effects specific to the 
urban environment of San Francisco or to the 
specific project. 

(b) The initial study shall provide data and 
analysis regarding the potential for the project to 
have a significant effect on the environment. The 
basic criteria for determination of significant 
effect shall be consistent with the provisions set 
forth in CEQA. 

(c) The applicant or the board, commission 
or department that is to carry out or approve the 
project shall submit to the Environmental Re- 
view Officer such data and information as may 
be necessary for the initial study. If such data 
and information are not submitted, the Environ- 
mental Review Officer may suspend work on the 
initial evaluation. 

(d) During preparation of the initial study, 
the Environmental Review Officer may consult 
with any person having knowledge or interest 
concerning the project. In cases in which the 
project is to be carried out or approved by more 
than one government agency and the City is the 
lead agency, the Environmental Review Officer 
shall solicit input from all other government 
agencies that are to carry out or approve the 
project. 

(e) If a project is subject to CEQA and the 
National Environmental Policy Act, an initial 
evaluation prepared pursuant to the National 
Environmental Policy Act may be used to satisfy 
the requirements of this Section. 

(f) Based on the analysis and conclusions in 
the initial study, the Environmental Review Of- 
ficer shall determine, based on the requirements 
of CEQA, whether there is a "fair argument" that 
the project could have a significant effect on the 
environment, and whether a negative declara- 
tion or environmental impact report shall be 
prepared. 



(f) Based on the analysis and conclusions in 
the initial study, the Environmental Review Of- 
ficer shall determine, based on the requirements 
of CEQA, whether the project could have a 
significant effect on the environment, and whether 
a negative declaration or environmental impact 
report shall be prepared. (Added by Ord. 40-01, 
File No. 001007, App. 3/16/2001; Ord. 116-06, 
File No. 060224, App. 6/1/2006) 

SEC. 31.11. NEGATIVE DECLARATIONS 
OR MITIGATED NEGATIVE 
DECLARATIONS. 

(a) When any negative declaration is re- 
quired, it shall be prepared by or at the direction 
of the Environmental Review Officer. The nega- 
tive declaration shall describe the project pro- 
posed, include the location of the property, pref- 
erably shown on a map, and the name of the 
project proponent, state the proposed finding 
that the project could not have a significant 
effect on the environment, and have attached to 
it a copy of the initial study documenting reasons 
to support that finding. The negative declaration 
shall also indicate mitigation measures, if any, 
included in the project to avoid potentially sig- 
nificant effects. 

(b) The Environmental Review Officer shall 
first prepare a negative declaration on a prelimi- 
nary basis, and shall post a copy of the proposed 
negative declaration in the offices of the Plan- 
ning Department and mail notice thereof to the 
applicant and the board(s), commission(s) or 
department(s) that will carry out or approve the 
project. 

(c) The Environmental Review Officer shall 
provide a notice of intent to adopt a negative 
declaration or mitigated negative declaration by 
publication in a newspaper of general circulation 
in the City, by posting in the offices of the 
Planning Department and on the subject site, by 
mail to the owners of all real property within the 
area that is the subject of the negative declara- 
tion and within 300 feet of all exterior bound- 
aries of such area, and by mail to all organiza- 
tions and individuals who have previously 
requested such notice in writing, sufficiently 
prior to adoption of the negative declaration to 



Supp. No. 1, September 2006 



3450.1 California Environmental Quality Act Sec. 31.11. 

Procedures and Fees - Evaluations 

allow the public and agencies a review period of 
not less than twenty (20) days, or thirty (30) days 
if required by CEQA. 

(d) The notice of intent shall specify the 
period during which comments are to be re- 
ceived, the date, time and place of any public 
hearings on the project, a brief description of the 
project and its location, and the address where 
copies of the negative declaration and all docu- 
ments referenced in the negative declaration are 
available for review. 

(e) Within twenty (20) days, or thirty (30) 
days if required by CEQA, following the publica- 
tion of such notice, any person may appeal the 
proposed negative declaration to the Planning 
Commission, specifying the grounds for such 
appeal. Any person may submit comments on the 
proposed negative declaration. 

(f) The Planning Commission shall hold a 
public hearing on any such appeal within not 
less than fourteen (14) nor more than thirty (30) 
days after the close of the appeal period. Notice 
of such hearing shall be posted in the offices of 
the Planning Department, and shall be mailed to 
the appellant, to the applicant, to the board(s), 
commission(s) or department(s) that will carry 
out or approve the project, to any individual or 
organization that has submitted comments on 
the proposed negative declaration, and to any 
other individual or organization that has re- 
quested such notice in writing. 

(g) After such hearing the Planning Com- 
mission shall affirm the proposed negative dec- 
laration if it finds that the project could not have 
a significant effect on the environment, may 
refer the proposed negative declaration back to 
the Planning Department for revisions, or shall 
overrule the proposed negative declaration and 



Supp. No. 1, September 2006 



[INTENTIONALLY LEFT BLANK] 



Supp. No. 1, September 2006 



3451 



California Environmental Quality Act 
Procedures and Fees - Evaluations 



Sec. 31.13. 



order preparation of an environmental impact 
report if it finds that the project may have a 
significant effect on the environment. 

(h) If the proposed negative declaration is 
not appealed as provided herein, or if it is af- 
firmed on appeal, the negative declaration shall 
be considered final, subject to any necessary 
modifications. Thereafter, the first City decision- 
making body to act on approval of the project 
shall review and consider the information con- 
tained in the final negative declaration, together 
with any comments received during the public 
review process, and, upon making the findings 
as provided in CEQA, shall adopt the negative 
declaration, prior to approving the project. All 
decision-making bodies shall review and con- 
sider the negative declaration and make findings 
as required by CEQA prior to approving the 
project. 

(i) If the City adopts a mitigated negative 
declaration, the decision-making body shall also 
adopt a program for reporting on or monitoring 
the mitigation measures for the project that it 
has either required or made a condition of ap- 
proval to mitigate or avoid significant environ- 
mental effects. 

(j) After the City has decided to carry out or 
approve the project, the Environmental Review 
Officer may file a notice of determination with 
the county clerk in the county or counties in 
which the project is to be located. If required by 
CEQA, the notice of determination shall also be 
filed with the California Office of Planning and 
Research. (Added by Ord. 40-01, File No. 001007, 
App. 3/16/2001) (Former Sec. 31.11; amended by 
Ord. 92-77, App. 3/18/77; repealed by Ord. 40-01) 

SEC. 31.12. DETERMINATIONS THAT 
ENVIRONMENTAL IMPACT REPORTS 
ARE REQUIRED. 

If it is determined that a project may have a 
significant effect on the environment and that an 
environmental impact report is required, the 
Environmental Review Officer shall publish the 
notice of preparation in a newspaper of general 
circulation in the City, shall post the notice of 
preparation in the offices of the Planning Depart- 



ment, and shall mail the notice of preparation to 
the applicant, the board(s), cominission(s) or 
department(s) that will carry out or approve the 
project and to all organizations and individuals 
who have previously requested such notice in 
writing. The Environmental Review Officer shall 
provide such other notice as required by CEQA. 
(Added by Ord. 40-01, File No. 001007, App. 
3/16/2001) (Former Sec. 31.12; amended by Ord. 
166-74, App. 4/11/74; repealed by Ord. 40-01) 

SEC. 31.13. DRAFT ENVIRONMENTAL 
IMPACT REPORTS. 

(a) When an environmental impact report 
("EIR") is required, it shall be prepared by or at 
the direction of the Environmental Review Of- 
ficer. The EIR shall first be prepared as a draft 
report. 

(b) The applicant or the board, commission 
or department that is to carry out or approve the 
project shall submit to the Environmental Re- 
view Officer such data and information as may 
be necessary to prepare the draft EIFL If such 
data and information are not submitted, the 
Environmental Review Officer may suspend work 
on the draft EIR. The data and infbrmation 
submitted shall, if the Environmental Review 
Officer so requests, be in the form of all or a 
designated part or parts of the proposed draft 
EIR itself, although the Environmental Review 
Officer shall in any event make his or her own 
evaluation and analysis and exercise his or her 
independent judgment in preparation of the draft 
EIR for public review. 

(c) During preparation of the draft EIR, the 
Environmental Review Officer may consult with 
any person having knowledge or interest concern- 
ing the project. If he/she has not already done so 
in accordance with Section 31.10 above, in cases 
in which the project is to be carried out or 
approved by more than one public agency, the 
Environmental Review Officer shall consult with 
all other public agencies that are to carry out or 
approve the project. 

(d) When the draft EIR has been prepared, 
the Environmental Review Officer shall file a 
notice of completion of such draft as required by 



Sec. 31.13. 



San Francisco - Administrative Code 



3452 



CEQA. A copy of such notice, or a separate notice 
containing the same information, shall there- 
upon be posted in the offices of the Planning 
Department and on the subject site, and mailed 
to the applicant, the board(s), commission(s) or 
department(s) that will carry out or approve the 
project, and to any individual or organization 
that has requested such notice in writing. The 
notice of completion shall be sent by mail to the 
owners of all real property within the area that is 
the subject of the environmental impact report 
and within 300 feet of all exterior boundaries of 
such area. A copy of the draft EIR shall be 
provided to the applicant and to such board(s), 
commission(s) or department(s) and to any indi- 
vidual or organization that has so requested. 
(Added by Ord. 40-01, File No. 001007, App. 
3/16/2001) (Former Sec. 31.13; added by Ord. 
134-73, App. 4/11/73; repealed by Ord. 40-01) 

SEC. 31.14. CONSULTATIONS AND 
COMMENTS. 

(a) Notice shall be sent to public agencies 
with jurisdiction by law, and persons with spe- 
cial expertise as follows: after filing a notice of 
completion as required by CEQA, the Environ- 
mental Review Officer shall send a copy of the 
draft EIR to any public agencies as required by 
CEQA, and may send copies to and consult with 
persons who have special expertise with respect 
to any environmental impact involved. 

(b) In sending such copies, the Environmen- 
tal Review Officer shall request comments on the 
draft EIR from such agencies and persons, with 
particular focus upon the sufficiency of the draft 
EIR in discussing possible effects on the environ- 
ment, ways in which adverse effects may be 
minimized, and alternatives to the project. 

(c) Each notice and request for comments 
shall state that any comments must be returned 
within a certain time after the sending of the 
draft EIR, and if comments are not returned 
within that time it shall be assumed that the 
agency or person has no comment to make. The 
time limit shall normally be thirty (30) days, or 
forty-five (45) days if required by CEQA. The 
Environmental Review Officer may allow a longer 
period for comments on projects of exceptional 



size or complexity. The Planning Commission or 
the Environmental Review Officer may, upon the 
request of an agency or person from whom com- 
ments are sought, grant an extension of time 
beyond the original period for comments, but 
such extension shall not interfere with the hold- 
ing of any hearing on the draft EIR for which 
notice has already been given. 

(d) Notice to the general public shall be 
provided as follows: 

(1) Public participation, both formal and 
informal, shall be encouraged at all stages of 
review, and written comments shall be accepted 
at any time up to the conclusion of the public 
comment period. The Environmental Review Of- 
ficer may give public notice at any formal stage 
of the review process, beyond the notices re- 
quired by this Chapter 31, in any manner it may 
deem appropriate, and may maintain a public 
log as the status of all projects under formal 
review. Members of the general public shall be 
encouraged to submit their comments in writing 
as early as possible. 

(2) The draft EIR shall be available to the 
general public upon filing of the notice of comple- 
tion. 

(3) The Planning Commission shall hold a 
public hearing on every draft EIR, with such 
hearing combined as much as possible with other 
activities of the Planning Commission. The En- 
vironmental Review Officer may, upon delega- 
tion by the Planning Commission, take testi- 
mony at supplemental public hearing(s) on draft 
EIRs, in addition to, and not in lieu of, the 
hearing conducted by the Planning Commission, 
and shall report to and make all testimony 
received by the Environmental Review Officer 
available to the Planning Commission at a public 
hearing. Notice of the Planning Commission hear- 
ings and all hearings at which the Environmen- 
tal Review Officer takes testimony shall be given 
by publication in a newspaper of general circu- 
lation in the City at least 30 days prior to the 
hearing, by posting in the offices of the Planning 
Department, by posting on or near the site 
proposed for the project; and by mail sent not 
less than 30 days prior to the hearing to the 



3453 



California Environmental Quality Act 
Procedures and Fees - Evaluations 



Sec. 31.16. 



applicant, to the board, commission or depart- 
ment that is to carry out or approve the project, 
and to any other individual or organization re- 
questing such notice. 

(4) The draft EIR, including any revisions 
made prior to or during the public hearing, shall 
be the basis for discussion at the hearing. To the 
extent feasible, any comments already received 
from any agency, organization or individual shall 
be available at the public hearing. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 
(Former Sec. 31.14; added by Ord. 134-73, App. 
4/11/73; repealed by Ord. 40-01) 

SEC. 31.15. FINAL ENVIRONMENTAL 
IMPACT REPORTS. 

(a) A final EIR shall be prepared by, or at 
the direction of, the Environmental Review Of- 
ficer, based upon the draft EIR, the consultations 
and comments received during the review pro- 
cess, and additional information that may be- 
come available. 

(b) The final EIR shall include a hst of 
agencies and persons consulted, the comments 
received, either verbatim or in summary, and a 
response to any comments that raise significant 
points concerning effects on the environment. 
The response to comments may take the form of 
revisions within the draft EIR, or by adding a 
separate section in the final EIR, or by providing 
an explanation in response to the comment. 

(c) A public record shall be kept of each case 
in which an EIR is prepared, including all com- 
ments received in writing in addition to a record 
of the public hearing. The final EIR shall indi- 
cate the location of such record. Any transcrip- 
tion of a hearing record shall be at the expense of 
the person requesting such transcription. 

(d) When the final EIR has been prepared 
and in the judgment of the Planning Commission 
it is adequate, accurate and objective, reflecting 
the independent judgment and analysis of the 
Planning Commission, the Planning Commis- 
sion shall certify its completion in compliance 
with CEQA. The certification of completion shall 
contain a finding as to whether the project as 



proposed will, or will not, have a significant 
effect on the environment. (Added by Ord. 40-01, 
File No. 001007, App. 3/16/2001) (Former Sec. 
31.15; added by Ord. 134-73, App. 4/11/73; re- 
pealed by Ord. 40-01) 

SEC. 31.16. APPEAL OF FINAL 
ENVIRONMENTAL IMPACT REPORTS. 

(a) Any person or entity that has submitted 
comments to the Planning Commission or the 
Environmental Review Officer on a draft EIR, 
either in writing during the public review period, 
or orally or in writing at a public hearing on the 
EIR, may appeal the Planning Commission's 
certification of a final EIR to the Board of Super- 
visors (the "Board"). 

(1) A letter of appeal shall be submitted to 
the Clerk of the Board within twenty (20) calen- 
dar days after the Planning Commission's certi- 
fication of the EIR, stating the specific grounds 
for appeal, and accompanied by a fee, as set forth 
in Section 31.22 herein, payable to the Clerk of 
the Board. The grounds for appeal shall be 
limited to issues related to the adequacy, accu- 
racy and objectiveness of the final EIR, including 
but not limited to the sufficiency of the final EIR 
as an informational document and the correct- 
ness of its conclusions, and the correctness of the 
findings contained in. the Planning Commission's 
certification of the EIR. The appellant shall 
submit a copy of the letter of appeal to the 
Environmental Review Officer at the time appel- 
lant submits a letter of appeal to the Clerk of the 
Board. 

(2) After receipt of the letter of appeal, the 
Environmental Review Officer shall promptly 
transmit copies of the EIR to the Clerk of the 
Board and make the administrative record avail- 
able to the Board. 

(3) While the appeal is pending, and until 
the EIR is affirmed or re-certified as may be 
required by the Board, the City shall not carry 
out or consider the approval of a project that is 
the subject of the EIR on appeal. 

(b) The Clerk of the Board shall promptly 
schedule a hearing on the appeal before the full 
Board, without regard to any rule or policy of the 



Sec. 31.16. 



San Francisco - Administrative Code 



3454 



Board requiring a 30-day review period. If more 
than one person submits a letter of appeal on a 
final EIR, the Board shall consolidate such ap- 
peals so that they are heard simultaneously. The 
Board may consolidate or coordinate its hearing 
on the appeal with other hearings on the project. 
Notice of the appeal shall be provided by mail to 
the appellants and to all organizations and indi- 
viduals who have previously requested such no- 
tice, not less than ten (10) days prior to the date 
of the hearing. 

(c) The Board shall conduct its own inde- 
pendent review of the final EIR. The Board shall 
consider anew all facts, evidence and/or issues 
related to the adequacy, accuracy and objective- 
ness of the final EIR, including but not limited to 
the sufficiency of the final EIR as an informa- 
tional document and the correctness of its con- 
clusions, and the Planning Commission's certifi- 
cation of the EIR. The Board may consider new 
facts, evidence and/or issues that were not intro- 
duced before the Planning Commission or the 
Environmental Review Officer. 

(d) The Board shall affirm the Planning 
Commission's certification of the final EIR only if 
the Board finds that the final EIR is adequate, 
accurate and objective, that its conclusions are 
correct, and that the findings contained in the 
Planning Commission's certification are correct. 
The Board may affirm or reverse the action of 
the Planning Commission only by a vote of a 
majority of all members of the Board. If the 
Board reverses the Planning Commission's cer- 
tification of the final EIR, it shall make specific 
findings and remand the final EIR to the Plan- 
ning Commission for further action consistent 
with the Board's findings. The Board shall act by 
motion in affirming or reversing the Planning 
Commission's certification of the final EIR. 

(e) The Board shall act on an appeal within 
thirty (30) days of appeal of the Planning 
Commission's certification of the EIR, provided 
that, if the full membership of the Board is not 
present on the last day on which said appeal is 
set or continued for hearing within such 30 days, 
the Board may postpone said hearing and deci- 
sion thereon until, but not later than, the full 



membership of the Board is present; provided 
further, that the latest date to which said hear- 
ing and decision may be so postponed shall be 
not more than ninety (90) days from the date of 
filing the appeal. The date of certification of the 
final EIR shall be the date upon which the 
Planning Commission originally certified the fi- 
nal EIR if: (i) no appeal is filed; or (ii) an appeal 
is filed and the Planning Commission's certifica- 
tion of the final EIR is affirmed by action of the 
Board. 

(f) In the event the Board remands an EIR 
to the Planning Commission, the Planning Com- 
mission shall take such action as may be re- 
quired by the specific findings made by the 
Board and consider re-certification of the EIR. In 
the event the EIR is re-certified by the Planning 
Commission, only the portions of the EIR which 
have been revised, or the new issues which have 
been addressed, by the Planning Commission 
may be appealed again to the Board pursuant to 
the procedures set forth herein. 

(g) The Board may reject an appeal if it 
finds that the appeal fails to state proper grounds 
for appeal. The Board shall act by motion in 
rejecting an appeal. (Added by Ord. 40-01, File 
No. 001007, App. 3/16/2001) (Former Sec. 31.16; 
amended by Ord. 166-74, App. 4/11/74; repealed 
by Ord. 40-01) 

SEC. 31.17. ACTIONS ON PROJECTS. 

(a) The certification of completion and the 
final EIR shall be transmitted by the Environ- 
mental Review Officer to the applicant and the 
board, commission or department that is to carry 
out or approve the project, and shall be pre- 
sented to the body which will decide whether to 
carry out or approve the project. These docu- 
ments shall also be presented to any appellate 
body in the event of an appeal from the decision 
whether to carry out or approve the project. 

(b) Before making its decision whether to 
carry out or approve the project, the decision- 
making body or appellate body shall review and 
consider the information contained in the EIR 
and shall make findings as required by CEQA. 



3455 



California Environmental Quality Act 
Procedures and Fees - Evaluations 



Sec. 31.20. 



(c) Thereafter, the decision-making body or 
appellate body may make its decision whether to 
carry out or approve the project. 

(d) After the City has decided to carry out or 
approve the project, the Environmental Review 
Officer may file a notice of determination with 
the county clerk of the county or counties in 
which the project is to be located and as required 
by CEQA. Such notice shall contain the informa- 
tion required by CEQA. (Added by Ord. 40-01, 
File No. 001007, App. 3/16/2001) (Former Sec. 
31.17; added by Ord. 134-73, App. 4/11/73; re- 
pealed by Ord. 40-01) 

SEC. 31.18. ADDITIONAL 
ENVIRONMENTAL REVIEW. 

If the Environmental Review Officer or a 
decision-making body, as defined in CEQA, de- 
termine that additional environmental review is 
required by CEQA, or if modifications to a project 
require additional environmental review, such 
review will be conducted as provided by CEQA 
and in accordance with the applicable proce- 
dures set forth in this Chapter 31. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 

SEC. 31.19. EVALUATION OF MODIFIED 
PROJECTS. 

(a) After evaluation of a proposed project 
has been completed pursuant to this Chapter, a 
substantial modification of the project may re- 
quire reevaluation of the proposed project. 

(b) Where such a modification occurs as to a 
project that has been determined to be excluded 
or categorically exempt pursuant to this Chap- 
ter, a new determination shall be made as pro- 
vided in this Chapter. 

(1) If the project is again determined to be 
excluded or categorically exempt, no further evalu- 
ation shall be required by this Chapter. 

(2) If the project is determined not to be 
excluded or categorically exempt, an initial study 
shall be conducted as provided in this Chapter. 

(c) Where such a modification occurs as to a 
project for which a negative declaration has been 
adopted or a final EIR has been certified, the 



Environmental Review Officer shall reevaluate 
the proposed project in relation to such modifi- 
cation. 

(1) If, on the basis of such reevaluation, the 
Environmental Review Officer determines, based 
on the requirements of CEQA, that no additional 
environmental review is necessary, this determi- 
nation and the reasons therefor shall be noted in 
writing in the case record, and no further evalu- 
ation shall be required by this Chapter. Notice of 
any such written determination and the reasons 
therefor shall be posted in the Planning Depart- 
ment, and shall be mailed to the applicant, the 
board, commission or department that will carry 
out or approve the project, to any individual or 
organization that has commented on the envi- 
ronmental document, and to any other indi- 
vidual or organization requesting such notice in 
writing. 

(2) If, on. the basis of such reevaluation, the 
Environmental Review Officer determines that 
additional environmental review is necessary, 
the project shall be considered a new project for 
purposes of environmental review pursuant to 
this Chapter. In that event, a new evaluation 
shall be completed prior to the decision by the 
City as to whether to carry out or approve the 
project as modified. CEQA sets forth specific 
requirements for the determination of whether a 
supplemental or subsequent EIR is necessary, as 
well as the process therefor. (Added by Ord. 
40-01, File No. 001007, App. 3/16/2001) 

SEC. 31.20. MULTIPLE ACTIONS ON 
PROJECTS, 

(a) The concept of a project is broadly de- 
fined by CEQA so that multiple actions of the 
same or of different kinds may often constitute a 
single project. This concept of a project permits 
all the ramifications of a public action to be 
considered together, and avoids duplication of 
review. 

(b) Early and timely evaluation of projects 
and preparation of E]IRs shall be emphasized. 

(c) Only one initial study, negative declara- 
tion or EIR shall be required for each project. 



Sec. 31.20. San Francisco - Administrative Code 3456 

(d) For purposes of determining the appro- 
priate time for evaluation of projects and prepa- 
ration of EIRs pursuant to this Chapter, there 
shall be only one relevant decision by the City to 
carry out or approve, or not to carry out or 
approve, a project. However for other purposes 
there may be more than one determination by 
the same or separate boards, commissions and 
departments of the City, either discretionary or 
ministerial, affecting the carrying out or ap- 
proval of the project. The authority and effective- 
ness of any other such determinations, including 
determinations by the Board of Appeals or any 
other appellate body, shall not be diminished by 
an5^hing in this Chapter. 

(e) Only one evaluation of a project or prepa- 
ration of an EIR shall occur in cases in which 
both the City and one or more other public 
agencies are to carry out or approve a project. In 
such cases the evaluation or preparation is per- 
formed by the lead agency, which agency is 
selected by reference to criteria in CEQA. 

(f) CEQA provides that a single initial study, 
negative declaration or EIR may be employed for 
more than one project, if all such projects are 
essentially the same in terms of environmental 
effects. Furthermore, an initial study, negative 
declaration or EIR prepared for an earlier project 
may be applied to a later project, if the circum- 
stances of the projects are essentially the same. 

(g) Reference is made in CEQA to simulta- 
neous consideration of multiple and phased 
projects, related projects, cumulative effects of 
projects, projects elsewhere in the region, exist- 
ing and planned projects. 

(h) With respect to projects preceding CEQA, 
and projects for which evaluations and EIRs 
have already been completed, or on which sub- 
stantial work has been performed, CEQA makes 
provision as to when, if at all, a new evaluation 
or EIR must be prepared. An effort shall be 
made, in preparation of evaluations and EIRs, to 
consider alternatives and thus avoid the need for 
such further review of the project. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 



[The next page is 3471] 



ARTICLE IV: FEES 



Sec. 31.21. Allocation of Costs. 



Sec. 31.22. 
Sec. 31.23. 



Basic Fees. 
Other Fees. 



Editor's Note: 

Ordinance 40-01, File No. 001007, App. 3/16/2001 
repealed former Chapter 31 in its entirety. Most of the 
provisions set forth in this chapter are similar to but not 
identical to or derivative from those repealed provi- 
sions. The Code user should therefore consult the 
derivation and disposition tables set forth as an appen- 
dix to this chapter for corresponding provisions. The 
legislative history of the former Code Sections can then 
be located in their numerical sequence in the text of 
each article. 

SEC. 31.21. ALLOCATION OF COSTS. 

(a) The costs of initial evaluations, prepara- 
tion of environmental impact reports, notices, 
hearings and other aspects of administering this 
Chapter 3.1 shall be borne as follows: 

(1) For a project to be carried out by the 
City: By the board, commission or department 
that is to carry out such project, as part of the 
budgeted project costs. 

(2) For a project to be carried out by any 
person other than the City: By such person, 

(3) For the taking of an appeal to the Plan- 
ning Commission: By the appellant. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001) 
(Former Sec. 31.21; added by Ord. 134-73, App. 
4/11/73; repealed by Ord. 40-01) 

SEC. 31.22. BASIC FEES. 

(a) The following basic fees shall be charged 
by the Planning Department, as specified in 
Section 31.21 above: 

(1) For an initial study of a project exclud- 
ing use of special expertise or technical assis- 
tance, as described in Section 31.21 below, the 
initial fee shall be: 



— Where the total estimated construction cost 
as defined by the San Francisco Building 
Code is between $0 and $9,999: $895; 

— Where said total estimated construction cost 
is $10,000 or more, but less than $200,000: 
$3,720 PLUS 1.725% of the cost over $10,000; 

— Where said total estimated construction cost 
is $200,000 or more, but less than $1,000,000: 
$6,997 PLUS 1.304% of the cost over 
$200,000; 

— Where said total estimated construction cost 
is $1,000,000 or more, but less than 
$10,000,000 $17,429 PLUS 1.094% of the 
cost over $1,000,000; 

— Where said total estimated construction cost 
is $10,000,000 or more, but less than 
$30,000,000: $115,889 PLUS .337% of the 
cost over $10,000,000; 

— Where said total estimated construction cost 
is $30,000,000 or more, but less than 
$50,000,000: $183,289 PLUS .127% of the 
cost over $30,000,000; 

— Where said total estimated construction cost 
is $50,000,000 or more, but less than 
$100,000,000: $208,689 PLUS .030% of the 
cost over $50,000,000; 

— Where said total estimated construction cost 
is $100,000,000 or more: $223,689 PLUS 
.013% of the cost over $100,000,000. 

An applicant proposing significant revisions 
to a project for which an application is on file 
with the Planning Department shall be charged 
time and materials to cover the full costs in 
excess of the fee paid. 

(2) For preparation of an environmental 
impact report excluding use of special expertise 
or technical assistance, as described in Section 
31.22 below, the initial fee shall be: 



3471 



Supp. No. 9, June 2007 



Sec. 31.22. 



San Francisco - Administrative Code 



3472 



— Where the total estimated construction cost 
as defined in the San Francisco Building 
Code is between $0 to $199,999: $19,870; 

— Where said total estimated construction cost 
is $200,000 or more, but less than $1,000,000: 
$19,870 PLUS .498% of the cost over 
$200,000; 

— Where said total estimated construction cost 
is $1,000,000 or more, but less than 
$10,000,000: $23,961 PLUS .337% of the 
cost over $1,000,000; 

— Where said total estimated construction cost 
is $10,000,000 or more, but less than 
$30,000,000: $54,291 PLUS .138% of the 
cost over $10,000,000; 

— Where said total estimated construction cost 
is $30,000,000 or more, but less than 
$50,000,000: $81,891 PLUS .038% of the 
cost over $30,000,000; 

— Where said total construction cost is 
$50,000,000 or more, but less than 
$100,000,000: $89,491 PLUS .038% of the 
cost over $50,000,000; 

— Where said total estimated construction cost 
is $100,000,000 or more: $108,491 PLUS 
.013% of the cost over $100,000,000. 

An applicant proposing significant revisions 
to a project for which an application is on file 
with the Planning Department shall be charged 
time and materials to cover the full costs in 
excess of the fee paid. 

(3) For an appeal to the Planning Commis- 
sion: The fee shall be $400 to the appellant; 
provided, however, that the fee shall be waived if 
the appeal is filed by a neighborhood organiza- 
tion that: (a) has been in existence for 24 months 
prior to the appeal filing date, (b) is on the 
Planning Department's neighborhood organiza- 
tion notification list, and (c) can demonstrate to 
the Planning Director or his/her designee that 
the organization is affected by the proposed 
project. An exemption from paying this appeal 
fee may be granted when the requestor's income 
is not enough to pay for the fee without affecting 
their abilities to pay for the necessities of life. 



provided that the person seeking the exemption 
demonstrates to the Planning Director or his/her 
designee that they are substantially affected by 
the proposed project. 

(4) For an appeal to the Board of Supervi- 
sors of environmental determinations, including 
the certification of an EIR, a negative declara- 
tion, or determination of a categorical exemp- 
tion, the fee shall be $400 to the appellant; 
provided, however, that the fee shall be waived if 
the appeal is filed by a neighborhood organiza- 
tion that: (a) has been in existence for 24 months 
prior to the appeal filing date, (b) is on the 
Planning Department's neighborhood organiza- 
tion notification list, and (c) can demonstrate to 
the Planning Director or his/her designee that 
the organization is affected by the proposed 
project. Fees shall be used to defray the cost of 
appeal for the Board of Supervisors and the 
Planning Department. Such fee shall be re- 
funded to the appellant in the event the Plan- 
ning Department rescinds its determination or 
the Board of Supervisors remands or rejects the 
environmental impact report, negative declara- 
tion, or determination of a categorical exemption 
to the Planning Commission for revisions based 
on issues related to the adequacy and accuracy of 
the environmental determination. An exemption 
from paying this appeal fee may be granted 
when the requestor's income is not enough to pay 
for the fee without affecting their abilities to pay 
for the necessities of life, provided that the 
person seeking the exemption demonstrates to 
the Clerk of the Board of Supervisors or his/her 
designee that they are substantially affected by 
the proposed project. 

(5) For preparation of an addendum to an 
environmental impact report that has previously 
been certified, pursuant to Section 15164 of the 
State CEQA Guidelines: $7,780 plus time and 
materials as set forth in Subsection (b)(2). 

(6) For preparation of a supplement to a 
draft or certified final environmental impact 
report: One-half of the fee that would be required 
for a full environmental impact report on the 
same project, as set forth in Paragraph (2) above, 
plus time and materials as set forth in Subsec- 
tion (b)(2). 



Supp. No. 9, June 2007 



3473 



California Environmental Quality Act 
Procedures and Fees - Fees 



Sec. 31.22. 



(7) For reevaluation of a modified project 
for which a negative declaration has been pre- 
pared: $7,780 plus time and materials as set 
forth in Subsection (b)(2). 

(8) For preparation of a Certificate of Ex- 
emption from Environmental Review determin- 
ing that a project is categorically exempt, statu- 
torily exempt, ministerial/nonphysical, an 
emergency, or a planning and feasibility study: 
$170 for applications that require only a stamp, 
$4,785 as an initial fee for applications that 
include preservation HRER review or require an 
Exemption Certificate, plus time and materials 
as set forth in Subsection (b)(2). 

(9) For preparation of a letter of exemption 
from environmental review: $170, plus time and 
materials as set forth in Subsection (b)(2). 

(10) For reactivating an application that 
the Environmental Review Officer has deemed 
withdrawn due to inactivity and the passage of 
time, subject to the approval of the Environmen- 
tal Review Officer and within six months of the 
date the application was deemed withdrawn: 
$190 plus time and materials to cover any addi- 
tional staff costs. 

(b) Payment. 

(1) The fee specified in Subsection (a)(1) 
shall be paid to the Planning Department at the 
time of the filing of the environmental evalua- 
tion application, and where an environmental 
impact report is determined to be required, the 
fee specified in Subsection (a)(2) shall be paid at 
the time the preliminary draft environmental 
impact report 1 (PDEIR 1) is prepared, except as 
specified below. However, the Director of Plan- 
ning or his/her designee may authorize phased 
collection of the fee for a project whose work is 
projected to span more than one fiscal year. 

(2) The Planning Department shall charge 
the applicant for any time and material costs 
incurred in excess of the initial fee charged if 
required to recover the Department's costs for 
providing services. Provided, however, that where 
a different limitation on time and materials is 
set forth elsewhere in this Section, that limita- 
tion shall prevail. 



(3) The Controller will annually adjust the 
fee amounts specified in Section 31.22(a)(5), (6), 
(7), (8), (9), (10) and Section 31.23(d) by the 
two-year average consumer price index (CPI) 
change for the San Francisco/San Jose Primary 
Metropolitan Statistical Area (PMSA). Effective 
September 30, 2007, the fee amounts specified in 
Section 31.22(a)(l)(2)(5), (6), (7), (8), (9), (10) and 
Section 31.23(d) will increase 6.3% to support an 
increase in departmental overhead from rent 
costs at 1650 Mission Street. 

(4) Any fraternal, charitable, benevolent or 
any other nonprofit organization, that is exempt 
from taxation under the Internal Revenue laws 
of the United States and the Revenue and Taxa- 
tion Code of the State of California as a bona fide 
fraternal, charitable, benevolent or other non- 
profit organization, or public entity that submits 
an application for the development of residential 
units all of which are affordable to low and 
moderate income households, as defined by the 
United State Housing and Urban Development 
Department, for a time period that is consistent 
with the policy of the Mayor's Office of Housing 
and the San Francisco Redevelopment Agency 
may defer payment of the fees specified herein, 
with the exception of the fees payable pursuant 
to Section 31.22(a)(3) and Section 31.22(a)(10) 
herein, until the time of issuance of the building 
permit, before the building permit is released to 
the applicant; or (2) within one year of the date of 
completion of the environmental review docu- 
ment, whichever is sooner. This exemption shall 
apply notwithstanding the inclusion in the de- 
velopment of other nonprofit ancillary or acces- 
sory uses. 

(5) An exemption from paying the full fees 
set forth in Section 31.22(a)(3) and Section 
31.22(a)(10) herein may be granted when the 
requestor's income is not enough to pay the fee 
without affecting his or her abilities to pay for 
the necessities of life, provided that the person 
seeking the exemption demonstrates to the Di- 
rector of Planning or his/her designee that he or 
she is substantially affected by the proposed 
project. 



Supp. No. 9, June 2007 



Sec. 31.22. 



San Francisco - Administrative Code 



3474 



(6) Exceptions to the payment provisions 
noted above may be made when the Director of 
Planning or his/her designee has authorized 
phased collection of the fee for a project whose 
work is projected to span more than one fiscal 
year. 

(c) Refunds. When a request for an initial 
evaluation or for preparation of an environmen- 
tal impact report is (1) either withdrawn by the 
applicant prior to publication of an environmen- 
tal document or (2) deemed canceled by the 
Planning Department due to inactivity on the 
part of the applicant, then the applicant shall be 
entitled to a refund of the fees paid to the 
Department less the time and materials ex- 
pended minus a $200 processing fee. 

(d) Late Charges and Collection of Over- 
due Accounts. The Director or his/her designee 
shall call upon the Bureau of Delinquent Rev- 
enues or duly licensed collection agencies for 
assistance in collecting delinquent accounts more 
than 60 days in arrears, in which case any 
additional costs of collection may be added to the 
fee amount outstanding. If the Department seeks 
the assistance of a duly licensed collection agency, 
the approval procedures of Administrative Code 
Article 5, Section 10.39-1 et seq. will be appli- 
cable. 

(e) These amendments to fees related to the 
Planning Department are intended to provide 
revenues for the staffing and other support nec- 
essary to provide more timely processing of ap- 
plications within that Department. (Added by 
Ord. 40-01, File No. 001007, App. 3/16/2001; 
amended by Ord. 155-04, File No. 040820, App. 
7/8/2004; Ord. 175-05, File No. 050917, App. 
7/29/2005; Ord. 185-06, File No. 060697, App. 
7/21/2006) 

(Former Sec. 31.22; amended by Ord. 92-77, App. 
3/18/77; repealed by Ord. 40-01) 

SEC. 31.23. OTHER FEES. 

(a) Where an initial evaluation or prepara- 
tion of an environmental impact report and re- 
lated environmental studies require the use of 
special expertise or technical assistance not pro- 
vided by the board, commission, department or 



other person who is to carry out the project, such 
expertise or assistance shall be paid for by such 
board, commission, department or other person. 
This payment shall be made either to the Plan- 
ning Department or, if the Planning Department 
so requests, directly to the party that will pro- 
vide such expertise or technical assistance. 

(b) Where outside consultants are used for 
such purposes, and the project is to be directly 
carried out by a person other than a board, 
commission or department of the City, such con- 
sultants shall report their findings directly to 
the Planning Department. 

(c) Where employees of the City are used for 
such purposes, the costs of such employees shall 
be paid to the board, commission or department 
providing such employees. 

(d) In addition to any filing fees required by 
statute, the County Clerk shall collect a docu- 
mentary handling fee in the amount of $25 for 
each filing made pursuant to California Fish and 
Game Code Section 711.4, Subdivision (d). (Added 
by Ord. 40-01, File No. 001007, App. 3/16/2001; 
Ord. 185-06, File No. 060697, App. 7/21/2006) 
(Former Sec. 31.23; amended by Ord. 92-77, App. 
3/18/77; repealed by Ord. 40-01) 



[The next page is 3483] 



Supp. No. 9, June 2007 



ARTICLE V: SEVERABILITY 



Sec. 31.24. Severability. 
Editor's Note: 

Ordinance 40-01, File No. 001007, App. 3/16/2001 
repealed former Chapter 31 in its entirety. Most of the 
provisions set forth in this chapter are similar to but not 
identical to or derivative from those repealed provi- 
sions. The Code user should therefore consult the 
derivation and disposition tables set forth as an appen- 
dix to this chapter for corresponding provisions. The 
legislative history of the former Code Sections can then 
be located in their numerical sequence in the text of 
each article. 



SEC. 31.24. SEVERABILITY. 

(a) If any article, section, subsection, para- 
graph, sentence, clause or phrase of this Chap- 
ter, or any part thereof, is for any reason held to 
be unconstitutional or invalid or ineffective by 
any court of competent jurisdiction, or other 
competent agency, such decision shall not affect 
the validity or effectiveness of the remaining 
portions of this Chapter 31 or any part thereof. 
The Board hereby declares that it would have 
passed each article, section, subsection, para- 
graph, sentence, clause or phrase thereof, irre- 
spective of the fact that any one or more articles, 
sections, subsections, paragraphs, sentences, 
clauses or phrases be declared unconstitutional 
or invalid or ineffective. 

(b) If the application of any provision or 
provisions of this Chapter to any person, prop- 
erty or circumstances is found to be unconstitu- 
tional or invalid or ineffective in whole or in part 
by any court of competent jurisdiction, or other 
competent agency, the effect of such decision 
shall be limited to the person, property or cir- 
cumstances immediately involved in the contro- 
versy, and the application of any such provision 
to other persons, properties and circumstances 
shall not be affected. 



(c) This Section 31.24 shall apply to this 
Chapter 31 as it now exists and as it may exist in 
the future, including all modifications thereof 
and additions and amendments thereto. (Added 
by Ord. 40-01, File No. 001007, App. 3/16/2001) 
(Former Sec. 31.24; amended by Ord. 92-77, App. 
3/18/77; repealed by Ord. 40-01) 

Sec. 31.25. 

(Amended by Ord. 92-77, App. 3/18/77; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.26. 

(Amended by Ord. 20-81, App. 1/9/81; Ord. 354- 
95, App. 11/15/95; repealed by Ord. 40-01, File 
No. 001007, App. 3/16/2001) 

Sec. 31.27. 

(Amended by Ord. 166-74, App. 4/11/74; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.28. 

(Amended by Ord. 166-74, App. 4/11/74; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.29. 

(Amended by Ord. 92-77, App. 3/18/77; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.31. 

(Amended by Ord. 166-74, App. 4/11/74; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.35. 

(Amended by Ord. 92-77, App. 3/18/77; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.36. 

(Amended by Ord. 92-77, App. 3/18/77; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.41. 

(Added by Ord. 134-73, App. 4/11/73; repealed by 

Ord. 40-01, File No. 001007, App. 3/16/2001) 



3483 



Sec. 31.24. San Francisco -Administrative Code 3484 

Sec. 31.45. 

(Added by Ord. 134-73, App. 4/11/73; repealed by 

Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.46. 

(Added by Ord. 173-91, App. 5/1/91; amended by 
Ord. 123-92, App. 5/1/92; Ord. 150-92, App. 5/29/ 
92; Ord. 317-92, App. 10/29/92; Ord. 149-93, App. 
5/25/93; Ord. 214-94, App. 6/2/94; Ord. 177-95, 
App. 6/2/95; Ord. 354-95, App. 11/15/95; Ord. 
305-96, App. 7/25/96; Ord. 338-97, App. 8/29/97; 
Ord. 169-98, App. 5/21/98; repealed by Ord. 40- 
01, File No. 001007, App. 3/16/2001) 

Sec. 31.47. 

(Amended by Ord. 91-86, App. 3/21/86; repealed 

by Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.50. 

(Added by Ord. 134-73, App. 4/11/73; repealed by 

Ord. 40-01, File No. 001007, App. 3/16/2001) 

Sec. 31.60. 

(Added by Ord. 154-91, App. 4/25/91; repealed by 

Ord. 40-01, File No. 001007, App. 3/16/2001) 



[The next page is 3493] 



APPENDIX 



Derivation Table 


Current Section 


Similar to Former Section 


31.01 


31.01 


31.02 


31.02, 31.03 


31.03 


31.04 


31.04 


31.05 


31.05 


31.41 


31.06 


31.11 


31.07 


31.14 


31.08 


31.17 


31.09 


31.22 


31.10 


31.23 


31.11 


31.24 


31.12 


31.25 


31.13 


31.26 


31.14 


31.27 


31.15 


31.28 


31.16 


— 


31.17 


31.29 


31.18 


— 


31.19 


31.35 


31.20 


31.31 


31.21 


31.45 


31.22 


31.46 


31.23 


31.47, 31.60 


31.24 


31.50 



Disposition Table 


Former Section 


Similar to Current Section 


31.01 


31.01 


31.02 


31.02 


31.03 


31.02 


31.04 


31.03 


31.05 


31.04 


31.11 


31.06 


31.12 


— 


31.13 


— 


31.14 


31.07 


31.15 


— 


31.16 


— 


31.17 


31.08 


31.21 


- 


31.22 


31.09 


31.23 


31.10 


31.24 


31.11 


31.25 


31.12 


31.26 


31.13 


31.27 


31.14 


31.28 


31.15 


31.29 


31.17 


31.31 


31.20 


31.35 


31.19 


31.36 


— 



3493 



San Francisco - Administrative Code 



3494 



Disposition Table 


Former Section 


Similar to Current Section 


31.41 


31.05 


31.45 


31.21 


31.46 


31.22 


31.47 


31.23 


31.50 


31.24 


31.60 


31.23 



[The next page is 3503] 



CHAPTER 32: RESIDENTIAL REHABILITATION LOAN PROGRAM 

Article Page 

L IN GENERAL 3505 

II. RESPONSIBILITIES OF BOARD OF SUPERVl SORS 3515 

m. ADMINISTRATION OF PROGRAM... 3525 

IV. CITIZENS ADVISORY COMMITTEE, AREA LOAN COMMITTEE AND 

AREA RENT COMMITTEE 3535 

V DESIGNATION OF RESIDENTIAL REHABILITATION AREAS AND 

DEVELOPMENT OF PLAN FOR PUBLIC IMPROVEMENTS 3543 

VI. LIMITATIONS ON AMOUNT OF LOAN 3553 

VIL TERMS OF CONVENTIONAL RAP LOANS.... 3563 

VIIL HARDSHIP LOANS 3577 

IX. MISCELLANEOUS PROVISIONS 3587 



3503 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE I: IN GENERAL 



Sec. 32.1. Purpose. 

Sec. 32.2. Definitions. 

Sec. 32.3. References to Public Officials 

and Public Agencies. 

SEC. 32.1. PURPOSE. 

This Chapter provides for the administration 
and financing of a Rehabilitation Assistance Pro- 
gram (RAP) in the City and County of San 
Francisco. The provisions of this Chapter consti- 
tute the City and County's comprehensive resi- 
dential rehabilitation financing program adopted 
pursuant to the Marks-Foran Residential Reha- 
bilitation Act of 1973, Section 37910, et seq., of 
the Health and Safety Code and under Charter 
Section 7.308. 

The purpose of RAP is to improve the condi- 
tion of housing and the quality of life in San 
Francisco by providing a means through which 
property owners in designated residential areas 
in San Francisco which are deteriorating may 
obtain financial assistance to rehabilitate their 
property. It shall be the policy of RAP to main- 
tain the existing diversity of San Francisco's 
neighborhoods; to encourage the existence of low 
and moderate income housing; and to preserve 
the residential character of designated areas. 
The methods to be used consist of concentrated 
code enforcement; relocation assistance; low- 
cost, long-term loans for property rehabilitation, 
and public improvements necessary to ensure 
the successful rehabilitation of the area. It shall 
be the policy of the City and County to provide 
adequate funding for these purposes as funds are 
available. 0\mended by Ord. 116-77, App. 4/1/77) 

SEC. 32.2. DEFINITIONS. 

Unless the context otherwise requires, the 
following definitions govern the construction of 
this Chapter: 

(a) 'Abatement Appeals Board" means the 
board described in Section 203.1 through 203. IG 
of the San Francisco Building Code. 



(b) "Area Rent Committee" means the com- 
mittee established in accordance with Section 
32.34. 

(c) "Bonds" means any bonds, notes, in- 
terim certificates, debentures, or other obliga- 
tions issued by the City and County pursuant to 
this Chapter and which are payable exclusively 
from revenues, as defined, and from any other 
funds specified in this Chapter upon which the 
bonds may be made a charge and from which 
they are payable. 

(d) "Citj^" means the City and County of 
San Francisco. 

(e) "Citizens Advisory Committee" means 
the committee established in accordance with 
Section 32.30. 

(f) "Code enforcement area" has the same 
meaning as residential rehabilitation area. 

(g) "Conventional RAP loan" means any resi- 
dential rehabilitation loan made pursuant to the 
provisions of this Chapter which is not a hard- 
ship loan. 

(h) "Designated area" has the same mean- 
ing as residential rehabilitation Area. 

(i) "Finance" means the lending of money or 
any other thing of value for the purpose of 
residential rehabilitation and unless otherwise 
indicated includes refinancing of outstanding 
indebtedness of a participating party with re- 
spect to property which is subject to residential 
rehabilitation. 

(j) "General property improvements" means 
those items of residential rehabilitation which 
are not necessary to meet either rehabilitation 
standards or incipient violations thereof 

(k) "Hardship loan" means an interest-free 
loan with deferred pajmients of principal made 
to a qualified low-income owner-occupant of prop- 
erty subject to residential rehabilitation who 
would not otherwise be able to pay the cost of 
meeting rehabilitation standards. 



3505 



Sec. 32.2. 



San Francisco - Administrative Code 



3506 



(1) "Incipient code violation" is a physical 
condition which can be expected to deteriorate 
into a violation of a rehabilitation standard within 
two years. 

(m) "Loan Committee" means the commit- 
tee established in accordance with Section 32.32 

(n) "Participating Party" means any person, 
company, corporation, partnership, firm or other 
entity or group of entities requiring financing for 
residential rehabilitation pursuEint to the provi- 
sions of this Chapter. 

(0) "Program" means the Rehabilitation As- 
sistance Program described in this Chapter and 
includes, but is not limited to, the provisions for 
code enforcement, rehabilitation financing, and 
installation of public improvements in residen- 
tial rehabilitation areas. 

(p) "Rehabilitation Assistance Program" or 
"RAP" has the same meaning as "program." 

(q) "Rehabilitation standards" means the 
standards established in the City and County 
Housing Code and other applicable City and 
County codes relating to the physical condition of 
structures. 

(r) "Rent Board" means the Residential Rent 
Stabilization and Arbitration Board of the City 
and County of San Francisco. 

(s) "Residence" means any structure, resi- 
dential or commercial, which is located in a 
residential rehabilitation area. 

(t) "Residential rehabilitation" means the 
construction, reconstruction, renovation, replace- 
ment, extension, repair, betterment, equipping, 
developing, embellishing, or otherwise improv- 
ing residences consistent with standards of 
strength, effectiveness, fire resistance, durabil- 
ity, and safety, so that such structures are satis- 
factory and safe to occupy for residential pur- 
poses and are not conducive to ill health, 
transmission of disease, infant mortality, juve- 
nile delinquency or crime because of any one or 
more of the following factors: 

(1) Defective design and character of physi- 
cal construction; 

(2) Faulty interior arrangement and exte- 
rior spacing; 



(3) Inadequate provisions for ventilation, 
lighting and sanitation; or 

(4) Obsolescence, deterioration and dilapi- 
dation. 

(u) "Residential rehabilitation area" means 
the geographical area designated by the Board of 
Supervisors as one for inclusion in a comprehen- 
sive residential rehabilitation financing program 
pursuant to the provisions of this Chapter. It 
may also be referred to as the "designated area" 
or the "Code enforcement area," the latter term 
being used in Section 301 A of the Housing Code. 

(v) "Residential rehabilitation loan fund" 
means the fund established with the proceeds of 
bonds issued pursuant to the provisions of this 
Chapter or any other fund established for the 
purpose of making loans to property owners 
pursuant to the provisions of this Chapter. 
(Amended by Ord. 269-82, App. 6/10/82) 

SEC. 32.3. REFERENCES TO PUBLIC 
OFFICIALS AND PUBLIC AGENCIES. 

(a) Unless otherwise indicated, all public 
officials and public agencies named in this Chap- 
ter are officials and agencies of the City and 
County. 

(b) Whenever a City and County official is 
referred to in this Chapter, the reference in- 
cludes that official and his or her designee or 
designees. 

(c) All references to the Charter or to ordi- 
nances are references to the Charter or to ordi- 
nances of the City and County. (Added by Ord. 
23-74, App. 1/9/74) 



[The next page is 3515] 



ARTICLE II: RESPONSIBILITIES OF BOARD OF SUPERVISORS 



Sec. 32.10. Issuance of Bonds. 
Sec. 32.11. Commitment to Enforce 

Rehabilitation Standards and 

Implement Plan for Public 

Improvements. 
Sec. 32.12. Designation of Residential 

Rehabilitation Areas. 

Sec. 32.13. Approval of Fees, Charges and 

Interest Rates on Financing. 
Sec. 32.14. Revision of Loan Charges. 

SEC. 32.10. ISSUANCE OF BONDS. 

The Board of Supervisors may from time to 
time by resolution authorize procedures for the 
issuance of bonds for the purpose of establishing 
a loan fund to be used to assist property owners 
with the rehabilitation of property located in 
Residential Rehabilitation Areas. The repay- 
ment of principal, interest and other charges on 
the loans to property owners, together with such 
other moneys as the Board of Supervisors may, 
in its discretion, make available therefor, shall 
be the sole source of funds pledged by the City 
and County for repayment of such bonds. Bonds 
issued under the provisions of this Chapter shall 
not be deemed to constitute a debt or liability of 
the City and County or a pledge of the faith and 
credit of the City and County, but shall be 
payable solely from the funds specified in this 
Section. The issuance of such bonds shall not 
directly, indirectly or contingently obligate the 
Board of Supervisors to levy or to pledge any 
form of taxation whatever therefor, or to make 
any appropriation for their payment. (Added by 
Ord. 23-74, App. 1/9/74) 

SEC. 32.11. COMMITMENT TO 
ENFORCE REHABILITATION 
STANDARDS AND IMPLEMENT PLAN 
FOR PUBLIC IMPROVEMENTS. 

Prior to using funds generated by the issu- 
ance of bonds pursuant to this Chapter for fi- 
nancing residential rehabilitation in any residen- 



tial rehabilitation area, the Board of Supervisors 
shall adopt a resolution committing the City and 
County, subject to budgetary and fiscal limita- 
tions, to: 

(a) Enforcement of rehabilitation standards 
in 95 percent of the structures in the Residential 
Rehabilitation Area; and 

(b) Implementation of plan for public im- 
provements in the Residential Rehabilitation 
Area, which plan has been developed with citi- 
zen participcLtion and adopted by the Board of 
Supervisors after a public hearing. 

Enforcement of rehabilitation standards shall 
be deemed to have been completed when a struc- 
ture has been brought into compliance with 
rehabilitation standards; when a structure is the 
subject of litigation directed to requiring compli- 
ance with rehabilitation standards; or when the 
owner of a structure is given a deferred time by 
the Abatement Appeals Board for compliance 
with specified rehabilitation standards which do 
not constitute immediate life hazards as that 
term is defined by the Director of the Depart- 
ment of Public Works. (Added by Ord. 23-74, 
App. 1/9/74) 

SEC. 32.12. DESIGNATION OF 
RESIDENTIAL REHABILITATION AREAS. 

The Board of Supervisors shall be respon- 
sible for designating, upon the recommendation 
of the Chief Administrative Officer, residential 
rehabilitation areas following the procedures and 
criteria provided for in Article V. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.13. APPROVAL OF FEES, 
CHARGES ^\ND INTEREST RATES ON 
FINANCING. 

The Board of Supervisors shall, upon the 
recommendations of the Chief Administrative 
Officer, approve by resolution prior to levy, all 
fees, charges and interest rates to be charged 



3515 



Sec. 32.13. San Francisco -Administrative Code 3516 

participating parties in connection with financ- 
ing residential rehabilitation. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.14. REVISION OF LOAN 
CHARGES. 

Prior to any revision of the fees, charges and 
interest rates for financing residential rehabili- 
tation, the Board of Supervisors shall prescribe 
standards for the revision of such fees, charges 
and interest rates. Such standards: 

(a) Shall be adopted by the Board of Super- 
visors after a public hearing preceded by public 
notice to affected parties; and 

(b) May reflect only changes in interest 
rates on the City and County's bonds, losses due 
to defaults, and bona fide changes in loan servic- 
ing charges related to the administration of a 
program under the provisions of this Chapter. 
(Added by Ord. 23-74, App. 1/9/74) 



[The next page is 3525] 



ARTICLE III: ADMINISTRATION OF PROGRAM 



Sec. 32.20. Responsibility for 

Administration of Program. 

Sec. 32.21. Rules and Regulations. 

Sec. 32.22. Management of Bond Proceeds. 

Sec. 32.23. Recommendation of Fees, 

Charges and Interest Rates on 

Financing. 
Sec. 32.24. Notice of Defaults and 

Foreclosures. 
Sec. 32.25. Publication of Explanatory 

Brochure. 

SEC. 32.20. RESPONSIBILITY FOR 
ADMINISTRATION OF PROGRAM. 

The Chief Administrative Officer shall be 
responsible for administration of all aspects of 
the Rehabilitation Assistance Program except 
those aspects for which responsibility is specifi- 
cally retained by the Board of Supervisors or 
assigned by the Board of Supervisors to another 
City and County agency. The Chief Administra- 
tive Officer, and each City and County agency 
assigned responsibilities by or pursuant to this 
Chapter, shall have all such authority as may be 
reasonably necessary to carry out those respon- 
sibilities. While retaining overall responsibility 
for administration of the program, the Chief 
Administrative Officer shall utilize the services 
of the Department of Public Works in connection 
with the code enforcement aspects of the pro- 
gram, and the services of the Real Estate Depart- 
ment in connection with the rehabilitation financ- 
ing aspects of the program. The Chief 
Administrative Officer may also request the as- 
sistance of any other City and County agency in 
meeting his or her responsibilities under this 
program. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.21. RULES AND REGULATIONS. 

The Chief Administrative Officer shall pro- 
mulgate such rules and regulations as he or she 
may deem appropriate to carry out the provi- 



sions of this Chapter. These rules and regula- 
tions shall be developed with the participation of 
the Citizen Advisory Committees and the Rent 
Board. A copy of all such rules and regulations 
shall be available for review by the public during 
regular business hours in the office of the Chief 
Administrative Officer, the office of the Clerk of 
the Board of Supei'visors, the Department of 
Public Works, and in every other office estab- 
lished for the purpose of carrying out this pro- 
gram. (Added by Ord. 269-82, App. 6/10/82) 

SEC. 32.22. MANAGEMENT OF BOND 
PROCEEDS. 

Unless provided otherwise in any bond reso- 
lution adopted pursuant to the provisions of this 
Chapter, the Chief Administrative Officer, acting 
on the recommendation of the Controller: 

(a) May invest and reinvest both the bond 
proceeds and the revenues from the financing of 
residential rehabilitation, and 

(b) May manage fiscally the proceeds of 
bonds issued for the purpose of establishing a 
residential rehabilitation loan fund, or 

(c) Together with the Purchaser may enter 
into contractual arrangement with private lend- 
ing institutions or trust companies to manage 
the Residential Rehabilitation Loan Fund, in- 
cluding investment and reinvestment of the funds, 
disbursements from the fund and collection of 
revenues. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.23. RECOMMENDATION OF 
FEES, CHARGES AND INTEREST RATES 
ON FINANCING. 

The Chief Administrative Officer, acting on 
the advice of the Controller, shall recommend to 
the Board of Supervisors for adoption: 

(a) The fees, charges and interest raites which 
will be charged participating parties in connec- 
tion with financing residential rehabilitation; 
and 



3525 



Sec. 32.23. San Francisco - Administrative Code 3526 

(b) Revisions, as necessary, of the fees, 
charges and interest rates levied on participat- 
ing parties, consistent with the standards adopted 
by the Board of Supervisors pursuant to Section 
32.14. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.24. NOTICE OF DEFAULTS AND 
FORECLOSURES. 

When there is a default on a conventional 
RAP loan secured by a deed of trust naming the 
City and County as a beneficiary and the prop- 
erty becomes subject to foreclosure procedures, 
the Chief Administrative Officer shall so inform 
the Citizens Advisory Committee for the residen- 
tial rehabilitation area where the property is 
located. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.25. PUBLICATION OF 
EXPLANATORY BROCHURE. 

Subject to funds being available, the Chief 
Administrative Officer shall cause to be pub- 
lished and available to the public a brochure 
describing RAP and how it affects both tenants 
and property owners. (Added by Ord. 23-74, App. 
1/9/74) 



[The next page is 3535] 



ARTICLE IV: CITIZENS ADVISORY COMMITTEE, AREA LOAN 
COMMITTEE AND AREA RENT COMMITTEE 



Sec. 32.30. Citizens Advisory Committee — 
Membership. 

Sec. 32,30-1. Citizens Advisory Committee — 
Membership. 

Sec. 32.31. Citizens Advisory Committee — 
Functions. 

Sec. 32.32. Loan Committee — Membership. 
Sec. 32.33. Loan Committee — Functions. 
Sec. 32.34. Area Rent Committee. 

SEC. 32.30. CITIZENS ADVISORY 
COMMITTEE— MEMBERSHIP. 

(a) There shall be established a Citizens 
Advisory Committee for each residential reha- 
bilitation area. Each Citizens Advisory Commit- 
tee shall consist of not more than 11 persons. 

(b) Property owners shall constitute six of 
the 11 members when 50 percent or more of the 
structures are owner occupied. The balance of 
the membership shall be tenants. 

(c) Tenants shall constitute six of the 11 
members when less than 50 percent of the struc- 
tures are owner occupied. The balance of the 
membership shall be property owners. 

(d) The determination as to whether 50 
percent or more of the structures are owner- 
occupied shall be made by Director of Planning 
at the time an area is proposed for designation as 
a RAP area by the Director. (Amended by Ord. 
567-77, App. 12/29/77) 

SEC. 32.30-1. CITIZENS ADVISORY 
COMMITTEE— MEMBERSHIP. 

(a) There shall be established a Citizens 
Advisory Committee for each residential reha- 
bilitation area. Each Citizens Advisory Commit- 
tee shall consist of 11 persons. 



(b) Memibers of the Citizens Advisory Com- 
mittee shall be selected from the following groups 
which are defined only for the purposes of Sec- 
tion 32.30-1. 

(1) "Property owners" means persons own- 
ing property in the residential rehabilitation 
area. 

(2) "Employees of property owners" means 
residents of the residential rehabilitation area 
who are employed by area property owners for 20 
or more hours per month. 

(3) "Agents of property owners" means resi- 
dents of the residential rehabilitation area who 
represent an area property owner in dealing 
with third persons for any purpose. 

(4) "Tenants" means residents of the resi- 
dential rehabilitation area who are not area 
property owners, employees of property owners, 
or agents of property owners as defined in this 
Section. 

(c) At least one property owner, and either 
additional property owners, employees of prop- 
erty owners, or agents of property owners shall 
constitute six of the 11 members of the Citizens 
Advisory Committee when 50 percent of the 
structures are owner-occupied. The balance of 
the membership shall be tenants. 

(d) Tenants shall constitute six of the 11 
members of the Citizens Advisory Committee 
when less than 50 percent of the structures are 
owner-occupied. The balance of the membership 
shall consist of at least one property owner and 
either additional property owners, employees of 
property owners, or agents of property owners. 

(e) The determination as to whether 50 per- 
cent or more of the structures are owner- 
occupied shall be made by the Director of Plan- 
ning at the time an area is proposed for designation 
as a RAP area by the Director. 



3535 



Sec. 32.30-1. 



San Francisco - Administrative Code 



3536 



(f) If the number of nominees for any con- 
stituency on the Citizens Advisory Committee 
exceeds the number of openings for that constitu- 
ency, a pubhcly announced election shall be held 
to select the members of that constituency and 
only members of that constituency may vote in 
that election. Property owners, employees of prop- 
erty owners, and agents of property owners shall 
constitute one constituency. Tenants shall consti- 
tute a separate constituency. 

(g) All nominations, appointments and elec- 
tions necessary to carry out the purposes of this 
Section shall be in accordance with rules and 
regulations promulgated by the Chief Adminis- 
trative Officer or the person to whom responsi- 
bility for administration of the program has been 
delegated. 

(h) The provision of this Section shall apply 
only in residential rehabilitation assistance ar- 
eas designated by resolution of the Board of 
Supervisors pursuant to Section 32.43 on or after 
July 1, 1977. (Added by Ord. 225-78, App. 5/1/78) 

SEC. 32.31. CITIZENS ADVISORY 
COMMITTEE— FUNCTIONS. 

The functions of the Citizens Advisory Com- 
mittee include the following: 

(a) Assist the Director of Planning and other 
relevant City and County departments in devel- 
oping a plan for public improvements in the 
residential rehabilitation area; 

(b) Participate with the Chief Administra- 
tive Officer in development of the rules and 
regulations governing implementation of the pro- 
gram; 

(c) Assist the Chief Administrative Officer 
in implementation of the Residential Rehabilita- 
tion Program in the Residential Rehabilitation 
Area; 

(d) Appoint a representative from the Resi- 
dential Rehabilitation Area to the Loan Commit- 
tee; 

(e) Appoint members of the Area Rent Com- 
mittee; 



(f) Develop by-laws for the operation of the 
Citizens Advisory Committee, which by-laws shall 
be subject to the approval of the Chief Adminis- 
trative Officer; 

(g) Assist the Chief Administrative Officer 
in his or her selection of the liaison staff; and 

(h) Act as liaison between the Chief Admin- 
istrative Officer and the owners of property in 
and residents of the Residential Rehabilitation 
Area in solving problems which arise in the 
course of implementation of the program, (Added 
by Ord. 23-74, App. 1/9/74) 

SEC. 32.32. LOAN COMMITTEE- 
MEMBERSHIP. 

There shall be a loan committee consisting of 
the following members: 

(a) One individual from each Residential 
Rehabilitation Area who shall be appointed by 
the Citizens Advisory Committee for the area; 

(b) One individual who is a permanent em- 
ployee of the Real Estate Department; and 

(c) One individual qualified in the field of 
real estate lending and financing who shall be 
appointed by the Chief Administrative Officer, 
unless provided otherwise in any bond resolution 
issued pursuant to the provisions of this Chap- 
ter. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.33. LOAN COMMITTEE- 
FUNCTIONS. 

The functions of Loan Committee are as 
follows: 

(a) The Loan Committee shall periodically 
review the rules and procedures and standards 
for the granting of residential rehabilitation loans 
and shall recommend changes as needed to the 
chief Administrative Officer. 

(b) The Loan Committee shall review and 
recommend approval or denial of applications 
required to be considered by the Loan Commit- 
tee by or pursuant to this Chapter. 

(c) The Loan Committee shall operate in an 
manner consistent with by-laws which shall be 
developed by the Chief Administrative Officer, 
and the recommendations of approval or denial 
of loan applications shall be in accordance with 



3537 Residential Rehabilitation Loan Program - Citizens Advisory Sec. 32.34. 

Committee, Area Loan Committee And Area Rent Committee 

the requirements contained in, or adopted pur- 
suant to, this Chapter. (Added by Ord. 23-74, 
App. 1/9/74) 

SEC. 32.34. AREA RENT COMMITTEE. 

There shall be an Area Rent Committee es- 
tablished in each Residential Rehabilitation Area. 
Each Area Rent Committee shall consist of two 
tenants and two landlords living in the area who 
shall be appointed by the Citizens Advisory Com- 
mittee pursuant to procedures established by the 
Chief Administrative Officer. (Added by Ord. 
23-74, App. 1/9/74) 



[The next page is 3543] 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE V: DESIGNATION OF RESIDENTIAL REHABILITATION AREAS AND 
DEVELOPMENT OF PLAN FOR PUBLIC IMPROVEMENTS 



Sec. 32.40. Provisions Supercede Section 
301.A of Housing Code. 

Sec. 32.41. Initial Selection of Areas for 
Designation as Residential 
Rehabilitation Areas by the 
Director of Planning. 

Sec. 32.42. Recommendation of an Area for 
Designation as a Residential 
Rehabilitation Area by the Chief 
Administrative Officer. 

Sec. 32.43. Designation of Residential 
Rehabilitation Areas by the 
Board of Supervisors. 

Sec. 32.44. Plan for Public Improvements. 

SEC. 32.40. PROVISIONS SUPERSEDE 
SECTION 301.A OF HOUSING CODE. 

The provisions of this Article control designa- 
tion of areas for residential rehabilitation assis- 
tance without regard to the provisions of Section 
301.A of the Housing Code. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.41. INITIAL SELECTION OF 
AREAS FOR DESIGNATION AS 
RESIDENTIAL REHABILITATION AREAS 
BY THE DIRECTOR OF PLANNING. 

(a) The Director of Planning shall recom- 
mend to the Chief Administrative Officer areas 
to be considered for designation by the Board of 
Supervisors. 

(b) Prior to recommending an area, the Di- 
rector of Planning shall conduct one or more 
public meetings in the area. Residents, property 
owners and representatives of neighborhood or- 
ganizations shall be invited to attend these meet- 
ings. At these meetings the Director of Planning 
shall explain the rehabilitation assistance pro- 
gram, shall invite comments from the public and 
shall raise for discussion the following issues: 

(1) Would rent increases or demolitions re- 
sulting from the cost of meeting rehabilitation 
standards result in widespread displacement of 
tenants; 



(2) Would RAP assist neighborhood-initi- 
ated improvement programs; 

(3) Would RAP preserve and improve the 
social, ethnic, and economic integration of the 
area; and 

(4) Is there support from residents of the 
area and from the owners of property in the area 
for institution of the RAP? 

(c) In deciding whether to recommend an 
area for designation as a Residential Rehabilita- 
tion Area, the Director of Planning shall take 
into consideration the comments from and the 
discussions with the public at the hearings held 
pursuant to Subsection (b). With each recommen- 
dation of a Residential Rehabilitation Area, the 
Director of Planning shall convey an opinion to 
the Chief Administrative Officer concerning the 
following factors: 

(1) The extent of public support for designa- 
tion of the area as a Residential Rehabilitation 
Area; 

(2) Whether there is a substantial number 
of deteriorating structures in the area which do 
not conform to rehabilitation standards; 

(3) Whether there is a need for financial 
assistance for residential rehabilitation to arrest 
the deterioration of the area; 

(4) Whether financing of residential reha- 
bilitation in the area is economically feasible; 

(5) Whether rent increases or demolitions 
resulting from the cost of meeting rehabilitation 
standards would result in widespread displace- 
ment of tenants; 

(6) Whether institution of RAP in the area 
would assist in neighborhood initiated improve- 
ment programs; and 

(7) Whether institution of RAP would pre- 
serve and improve the social, ethnic, and eco- 
nomic integration of the area. (Added by Ord. 
23-74, App. 1/9/74) 



3543 



Sec. 32.42. 



San Francisco - Administrative Code 



3544 



SEC. 32.42. RECOMMENDATION OF AN 
AREA FOR DESIGNATION AS A 
RESIDENTIAL REHABILITATION AREA 
BY THE CHIEF ADMINISTRATIVE 
OFFICER. 

If, after reviewing the recommendation of the 
Director of Planning for designation of an area, 
the Chief Administrative Officer is satisfied that 
the area is appropriate for designation as a 
Residential Rehabilitation Area, the Chief Ad- 
ministrative Officer shall recommend to the Board 
of Supervisors that it designate the area as a 
Residential Rehabilitation Area. Along with any 
recommendation of an area for designation as a 
Residential Rehabilitation Area, the Chief Ad- 
ministrative Officer shall transmit to the Board 
of Supervisors the Director of Planning's opinion 
given pursuant to Section 32.41(c). (Added by 
Ord. 23-74, App. 1/9/74) 

SEC. 32.43. DESIGNATION OF 
RESIDENTIAL REHABILITATION AREAS 
BY THE BOARD OF SUPERVISORS. 

Residential Rehabilitation Areas shall be so 
designated by resolution of the Board of Super- 
visors following a public hearing and findings 
that: 

(a) There is a substantial number of dete- 
riorating structures in the area which do not 
conform to rehabilitation standards; 

(b) Low-cost, long-term property owner loans 
are necessary to arrest the deterioration of the 
area; and 

(c) Based upon currently available data and 
past experience with residential rehabilitation 
assistance projects (including experience with 
federally assisted code enforcement areas), fi- 
nancing of residential rehabilitation in the area 
is economically feasible. (Added by Ord. 23-74, 
App. 1/9/74) 

SEC. 32.44. PLAN FOR PUBLIC 
IMPROVEMENTS. 

With the participation of the Citizens Advi- 
sory Committee, and in consultation with other 
relevant City and County agencies, the Director 
of Planning shall develop a proposed plan for 



public improvements for each Residential Reha- 
bilitation Area. The proposed plan for public 
improvements for each area shall include all 
items the Director of Planning deems necessary 
to the successful rehabilitation of the Residential 
Rehabilitation Area and shall include consider- 
ation of health, recreation, child care, education, 
culture and safety facilities and services. The 
Director of Planning shall submit the proposed 
plan for public improvements in a Residential 
Rehabilitation Area to the Board of Supervisors. 
Prior to submittal of the plan for public improve- 
ments to the Board of Supervisors, the Director 
of Planning shall transmit it to the Citizens 
Advisory Committee for its recommendations. 
The Citizens Advisory Committee's recommen- 
dations shall be transmitted to the Board of 
Supervisors along with the proposed plan. The 
Board of Supervisors shall consider the plan at a 
public hearing. After such modification of the 
proposed plan, if any, as the Board of Supervisors 
deems necessary, the Board shall adopt a plan 
for public improvements for that area. (Added by 
Ord. 23-74, App. 1/9/74) 



[The next page is 3553] 



ARTICLE VI: LIMITATIONS ON AMOUNT OF LOAN 



Sec. 32.50. 

Sec. 32.51. 
Sec. 32.52. 



Sec. 32.53. 
Sec. 32.54. 



Maximum Indebtedness on 

Property. 

Maximum Amount of Loan. 

Limitations on Use of Loan for 

General Property 

Improvements. 

Refinancing. 

Limitation Based on Fair 

Market Value of Work. 



SEC. 32.50. MAXIMUM INDEBTEDNESS 
ON PROPERTY. 

Outstanding loans on the property to be 
rehabilitated, including the amount of the loan 
for rehabilitation, shall not exceed 80 percent of 
the anticipated after-rehabilitation value of the 
property to be rehabilitated, as determined by 
the Chief Administrative Officer, except that the 
Chief Administrative Officer may authorize loans 
of up to 95 percent of the anticipated after- 
rehabilitation value of the property if: 

(a) Such loans are made for the purpose of 
rehabilitating the property for residential pur- 
poses; 

(b) There is demonstrated need for such 
higher limit; and 

(c) There is a high probability that the 
value of the property will not be impaired during 
the term of the loan. (Added by Ord. 23-74, App. 
1/9/74) 

SEC. 32.51. MAXIMUM AMOUNT OF 
LOAN. 

The maximum loan for rehabilitation shall be 
as follows: single family, $30,000; two — three 
units, $10,000 per unit; four or more units, 
$7,500; commercial, $5,000 per unit; guest rooms, 
as defined in Section 203.7 of the Housing Code, 
$2,500 per unit. 

The Chief Administrative Officer may ap- 
prove a loan in excess of these amounts following 
guidelines established by the Chief Administra- 



tive Officer; provided, that in no case may the 
loan exceed $17,500 per unit for dwelling units 
other than in single family dwellings and $11,500 
per unit for guest rooms. (Amended by Ord. 
30-78, App. 1/13/78) 

SEC. 32.52. LIMITATIONS ON USE OF 
LOAN FOR GENERAL PROPERTY 
IMPROVEMENTS. 

No more than 20 percent of any loan for 
residential rehabilitation shall be used for gen- 
eral property improvements except that in the 
case of owner-occupied, one-to-four dwelling unit 
properties, up to 40 percent of the loan may be 
used for general property improvements. (Added 
by Ord. 23-74, App. 1/9/74) 

SEC. 32.53. REFINANCING. 

(a) A loan maj^ be made to refinance an 
existing indebtedness on a residence if the cost of 
meeting rehabilitation standards and correcting 
incipient violations thereof for the residence equals 
at least 20 percent of the principal amount of the 
loan; and 

(1) If the sum of the monthly principal and 
interest payments on the proposed loan for reha- 
bilitation and the monthly payments on existing 
debt secured by the property, plus property taxes 
and insurance, would result in total monthly 
payments that would exceed 20 percent of the 
applicant's total monthly income; or 

(2) If the Loan Committee recomraends ap- 
proval of refinancing and the recommendation is 
accepted by the Chief Administrative Officer; 

(b) If the Chief Administrative Officer does 
not accept the recommendation of the Loan Com- 
mittee regarding refinancing, he or she shall 
give written reasons for the refusal to accept 
such recommendation. 

(c) In deciding whether to recommend that 
refinancing be made available to any particular 
applicant, the Loan Committee shall adhere to 
guidelines for refinancing which shall be adopted 



3553 



Sec. 32.53. 



San Francisco - Administrative Code 



3554 



by the Chief Administrative Officer. In develop- 
ing guideUnes for refinancing, the Chief Admin- 
istrative Officer shall take into consideration the 
availability of funds for financing residential 
rehabilitation, the need to prevent significant 
rent increases which would result in a hardship 
for tenants, and the need to prevent speculators 
from profiting from the use of residential reha- 
bilitation financing. (Amended by Ord. 116-77, 
App. 4/1/77) 

SEC. 32.54. LIMITATION BASED ON 
FAIR MARKET VALUE OF WORK. 

(a) Prior to the granting of any loan over 
$20,000 under this Chapter, a qualified estima- 
tor will make an on-premises inspection of the 
applicant's property and certify, in writing, that 
the estimated cost of the recommended work, as 
detailed in the job specifications, is not more 
than 10 percent above fair market value. No loan 
will be granted in an amount exceeding 10 per- 
cent of fair market value for the work specified or 
higher than the lowest bid received, whichever is 
less, without the approval of the Chief Adminis- 
trative Officer 

(b) Where loan is under $20,000 and low bid 
exceeds estimate of building inspector by 10 
percent, the Real Estate Department will hire an 
estimator to certify the fair market value of the 
job specifications. 

(c) A qualified estimator is a person: 

(1) Who is not a City employee; but 

(2) Who is selected by the Chief Administra- 
tive Officer because he or she is qualified and 
experienced in the area of residential rehabilita- 
tion. 

The estimator shall operate under the direc- 
tion of the Director of the Real Estate Depart- 
ment. 

(d) A property owner wishing to challenge 
the low bid or the estimator's value may hire a 
licensed estimator if he or she so desires. 

(e) The Chief Administrative Officer shall, 
semi-annually, direct a report to the Board of 
Supervisors setting forth a list of the loans which 
were in excess of 10 percent of the estimated fair 
market value pursuant to the provisions of Para- 



graph (a) giving the reasons for approval in each 
case. (Amended by Ord. 274-78, App. 6/9/78) 



[The next page is 3563] 



ARTICLE VII: TERMS OF CONVENTIONAL RAP LOANS 



Sec. 32.60. Eligibility for Loans. 

Sec. 32.61. Maximum Repayment Period 

for Loan; Initiation of Payments 

After Rehabilitation. 
Sec. 32.62. Prepayment Penalties. 
Sec. 32.63. Security for Loan. 
Sec. 32.64. Insurance. 
Sec. 32.65. Impound Account. 
Sec. 32.66. Transfer of Loans. 
Sec. 32.67. Interest Rates and Other Loan 

Charges. 
Sec. 32.68. Variable Interest Rate. 
Sec. 32.69. Tenant Moving Costs and Right 

of First Refusal. 
Sec. 32.70. Open Housing. 
Sec. 32.71. Equal Emplojmient Opportunity. 
Sec. 32.71-1. Performance of Work by 

Licensed General Building 

Contractor. 

Sec. 32.72. Enforcement of Loan Provisions. 
Sec. 32.73. Rent Increase Limitations for 

Areas Designated Prior to July 

1, 1977. 
Sec. 32.73-1. Rent Increase Limitations for 

Areas Designated on or After 

July 1, 1977. 
Sec. 32.74. Rent Increase Protest 

Procedures. 
Sec. 32.75. Sanctions for Violation of Rent 

Increase Limitations. 
Sec. 32.75-1. Evictions. 

SEC. 32.60. ELIGIBILITY FOR LOANS. 

(a) Each owner of property located within a 
residential rehabilitation area is eligible for a 
conventional RAP loan, provided the owner dem- 
onstrates to the satisfaction of the Chief Admin- 
istrative Officer the ability to repay such a loan; 
applies for the loan within a time period to be 
designated by the Chief Administrative Officer; 



and can meet the other requirements of this 
Chapter. The property owner shall agree to all 
conditions of the loan agreement as a prerequi- 
site to obtaining a loan. No elective officer of the 
state or any of its subdivisions shall be eligible to 
receive a loan under the provisions of this Chap- 
ter. 

(b) Any owner who is denied a loan by the 
Chief Administrative Officer on the grounds that 
the owner does not meet eligibility requirements 
may appeal the decision to the Loan Committee. 
The Loan Committee shall review the applica- 
tion for a loan and make a recommendation 
regarding approval or denial to the Chief Admin- 
istrative Officer. In reviewing the application, 
the Loan Committee shall give due consideration 
to the need for the loan to be made in order to 
accomplish the purposes of the program, the 
risks to the City and County of granting the loan, 
and the ability of the property to support the 
loan as well as to the reasons for denial of the 
application by the Chief Administrative Officer. 
If the Chief Administrative Officer does not ac- 
cept the recommendations of the Loan Commit- 
tee, he or she shall give written reasons for the 
refusal to approve the loan. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.61. MAXIMUM REPAYMENT 
PERIOD FOR LOAN; INITIATION OF 
PAYMENTS AFTER REHABILITATION. 

(a) The maximum repayment period for a 
conventional RAP loan shall be 20 years or ^U of 
the economic life of the property, whichever is 
less. 

(b) Subject to budgetary and fiscal limita- 
tions, payments on a conventional RAP loan 
shall not be required to commence prior to comple- 
tion of the improvements for which such loan is 
made; provided that payments shall begin no 
later than six months after an initial disburse- 
ment from proceeds of the loan. The monthly 
pajrment due under the loan shall be adjusted to 



3563 



Sec. 32.61. 



San Francisco - Administrative Code 



3564 



insure repayment of the principal and interest 
due on the loan within the time required by 
paragraph (a) of this Section. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.62. PREPAYMENT PENALTIES. 

There shall be no penalty assessed for pre- 
payment of any conventional RAP loan. (Added 
by Ord. 23-74, App. 1/9/74) 

SEC. 32.63. SECURITY FOR LOAN. 

Unless provided otherwise in any bond reso- 
lution issued pursuant to the provisions of this 
Chapter, every conventional RAP loan shall be 
secured by a deed of trust naming the City and 
County as beneficiary of the trust. (Added by 
Ord. 23-74, App. 1/9/74) 

SEC. 32.64. INSURANCE. 

All conventional RAP loan agreements shall 
provide that so long as the loan or any portion of 
it is outstanding, the owner of the property 
subject to the loan shall carry adequate property 
insurance. The Chief Administrative Officer shall 
establish standards for determining when prop- 
erty insurance is adequate. (Added by Ord. 23- 
74, App. 1/9/74) 

SEC. 32.65. IMPOUND ACCOUNT. 

If the Chief Administrative Officer deems it 
desirable and necessary to effectuate the pur- 
poses of the program that an impound account be 
required to assure taxes, insurance, or a main- 
tenance reserve, he or she may include such a 
requirement in any conventional RAP loan agree- 
ment. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.66. TRANSFER OF LOANS. 

(a) The unpaid amount of a conventional 
RAP loan shall be due and payable upon sale or 
transfer of the ownership of the property, except 
that assignment of the unpaid amount of such a 
loan to a purchaser or transferee may be permit- 
ted when the Chief Administrative Officer deter- 
mines that hardship conditions exist and the 
prospective owner qualifies for a loan on the 
basis of current loan eligibility standards. 



(b) If the holder of a conventional RAP loan 
is dissatisfied with the Chief Administrative 
Officer's refusal to permit transfer of the unpaid 
amount of the loan because of a finding that 
hardship conditions do not exist, the holder of 
the loan may request review of the Chief Admin- 
istrative Officer's determination by the Loan 
Committee. If the Loan Committee recommends 
a finding that hardship conditions exist, the 
Chief Administrative Officer shall either accept 
that recommendation or give written reasons for 
the refusal to accept it. 

(c) Hardship conditions exist: 

(1) When the owner of property subject to a 
conventional RAP loan is forced to sell the prop- 
erty and the property cannot be sold without a 
substantial loss of equity unless the loan is 
transferable; 

(2) When the income of a prospective pur- 
chaser of property subject to a conventional RAP 
loan is at or below income standards to be 
established by the Chief Administrative Officer; 
or 

(3) When the prospective purchaser is un- 
able to obtain financing in the private sector 
because of age, disability or sex; or 

(4) When transfer of the loan is necessary to 
prevent significant rent increases. 

(d) The Chief Administrative Officer shall 
develop standards which shall be applied in 
making determinations required under this Sec- 
tion. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.67. INTEREST RATES AND 
OTHER LOAN CHARGES. 

The interest rate and any other charges for a 
conventional RAP loan shall be established pur- 
suant to the provisions of Sections 32.13 and 
32.23, and may include: 

(a) The interest charged the City and County 
on funds borrowed to carry out the provisions of 
this Chapter; 

(b) An amount needed to provide for pos- 
sible defaults on outstanding loans; 

(c) An amount to cover the cost of servicing 
loan accounts; 



3565 



Residential Rehabilitation Loan Program 
Conventional RAP Loans 



Terms of 



Sec. 32.72. 



(d) An amount to cover the cost of making 
hardship loans (as provided for in Article VIII); 
and 

(e) An amount to cover the costs of issuing 
bonds. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.68. VARL^LE INTEREST RATE. 

In connection with a conventional RAP loan, 
the loan agreement may provide for a variable 
interest rate. If the loan agreement does provide 
for a variable interest rate, the terms of the loan 
agreement and any change in the interest rate or 
other charges shall conform to the requirements 
of Sections 37917 of the Health and Safety Code 
of the State of California relating to the use of 
variable interest rates in connection with financ- 
ing residential rehabilitation. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.69. TENANT MOVING COSTS 
AND RIGHT OF FIRST REFUSAL. 

All conventional RAP loan agreements shall 
provide that, in the case of dwelling units which 
must be vacated because of residential rehabili- 
tation to be performed on the structures where 
they are located: 

(a) A tenant who must vacate a dwelling 
unit shall have the right of first refusal to occupy 
that unit at a rent adjusted in accordance with 
the San Francisco Administrative Code when 
rehabilitation of the property is completed; 

(b) The property owner shall give each ten- 
ant affected written notice 30 days prior to the 
date the tenant must vacate of the following: 

(1) That the tenant has the right to first 
refusal to reoccupy the unit vacated when reha- 
bilitation of the property is completed; 

(2) That relocation assistance may be avail- 
able and that relocation information may be 
obtained from the Chief Administrative Officer, 
Room 289, City Hall, San Francisco; and 

(3) That the tenant may be subject to cer- 
tain protections under the Rent Ordinance and 
that information concerning such protection is 
available from the Rent Board, 170 Fell Street, 
Room 16, San Francisco. 



(c) A copy of the notice specified in clause 
(b) shall be forwarded to the Rent Board. 
(Amended by Ord. 112-83, App. 3/11/83) 

SEC. 32.70. OPEN HOUSING. 

All conventional RAP loan agreements shall 
provide that so long as the loan or any portion of 
it is outstanding the property shall be open upon 
sale or rental of all or any portion thereof, to all 
persons regardless of race, color, religion, na- 
tional origin or ancestry. (Added by Ord. 23-74, 
App. 1/9/74) 

SEC. 32.71. EQUAL EMPLOYMENT 
OPPORTUNITY. 

All conventional RAP loan agreements shall 
provide that all contracts and subcontracts let 
for residential rehabilitation financed under this 
Chapter are to be let without regard to the race, 
sex, marital status, color, religion, national ori- 
gin or ancestry of the contractor or subcontrac- 
tor. Further, all conventional RAP loan agree- 
ments shall provide that any contractor or 
subcontractor engaged in residential rehabilita- 
tion financed under this Chapter must agree to 
provide equal opportunity for employment with- 
out regard to race, sex, marital status, color, 
religion, national origin or ancestry. (Added by 
Ord. 23-74, App. 1/9/74) 

SEC. 32.71-1. PERFORMANCE OF WORK 
BY LICENSED GENERAL BUILDEVG 
CONTRACTOR. 

A licensed general building contractor having 
in his or her contract more than two unrelated 
building trades or crafts may do or superintend 
the whole or any part of residential rehabilita- 
tion without regard to the provisions of Section E 
I of the Plumbing Code or Section 41 of the 
Electrical Code. (Added by Ord. 23-74, App. 
1/9/74) 

SEC. 32.72. ENFORCEMENT OF LOAN 
PROVISIONS. 

The provisions of Section 32.70 and the pro- 
visions of Section 32.71 is they relate to enforce- 
ment of nondiscrimination on the basis of race, 
sex, marital status, color, religion, national ori- 



Sec. 32.72. 



San Francisco - Administrative Code 



3566 



gin or ancestry, are enforceable by the Human 
Rights Commission. The enforcement powers, 
responsibilities and procedures of the Human 
Rights Commission set forth in Chapters 12A 
and 12B of the San Francisco Administrative 
Code shall be applicable to carry out the 
Commission's responsibilities under this Chap- 
ter. In addition, pursuant to rules to be adopted 
by the Chief Administrative Officer, violation of 
the loan agreement provisions required by Sec- 
tions 32.69, 32.70, and 32.71 may result in any 
outstanding financing obtained pursuant to the 
loan agreement becoming immediately due and 
payable. (Added by Ord. 23-74, App. 1/9/74) 

SEC. 32.73. RENT EVCREASE 
LIMITATIONS FOR AREAS DESIGNATED 
PRIOR TO JULY 1, 1977. 

(a) The property owner shall agree that 
during the time any conventional RAP loan is 
outstanding, rent for any dwelling unit in the 
rehabilitated residence shall not exceed the base 
rent plus actual increased costs to the owner in 
the form of monthly loan payments, property 
taxes, insurance, maintenance, and annual ad- 
justments tied to the Bay Area Cost of Living 
Index. 

(b) The Chief Administrative Officer shall 
calculate the annual cost of living adjustment on 
the basis of the Bay Area cost of living index as of 
January 1st each year, and shall announce to 
both property owners and tenants the adjust- 
ment no later than 30 days following publication 
of such figures by the United States Department 
of Commerce. 

(c) Base rent date is the 180th day preced- 
ing the date of designation of the area for resi- 
dential rehabilitation by the Board of Supervi- 
sors or the date 10 days preceding the first public 
meeting conducted in a residential rehabilitation 
area by the Director of Planning, whichever is 
earlier in time. 

(d) Base rent for a dwelling unit is the rent 
charged for this dwelling unit on the base rent 
date; except that if no rent was being charged on 
the base rent date, or if the property owner 
believes that the rent charged on the base rent 



date was unreasonably low due to special condi- 
tions, the property owner may petition the Chief 
Administrative Officer to establish a base rent or 
to revise the base. The Chief Administrative 
Officer shall give notice and an opportunity to 
comment in writing to tenants to be affected by 
the Chief Administrative Officer's decision. In 
establishing or revising the base rent, the Chief 
Administrative Officer shall take into consider- 
ation the rent charged on the base rent date for 
comparable units within the same building; the 
rent charged on the base rent date for compa- 
rable units in the immediate neighborhood; and 
any special or unusual circumstances affecting 
the rent charged on the base rent date for the 
subject unit. 

(e) Any property owner who petitions the 
Chief Administrative Officer to establish or re- 
vise the base rent and any tenant occup5dng a 
unit for which such a petition is brought by the 
property owner may appeal the base rent to the 
Area Rent Committee. Unless the Area Rent 
Committee decides otherwise by a vote of three, 
the decision of the Chief Administrative Officer 
shall stand. 

(f) The provisions of this Section shall apply 
in all residential rehabilitation areas designated 
by resolution of the Board of Supervisors pursu- 
ant to Section 32.43 prior to July 1, 1977. 
(Amended by Ord. 269-82, App. 6/10/82) 

SEC. 32.73-1. RENT INCREASE 
LIMITATIONS FOR AREAS DESIGNATED 
ON OR AFTER JULY 1, 1977. 

(a) The property owner shall agree that 
during the time any conventional RAP loan is 
outstanding, rent for a tenant occupying a dwell- 
ing unit in the rehabilitated residence shall not 
exceed that rent which is allowable under Chap- 
ter 37 of the San Francisco Administrative Code. 

(b) At the time the RAP loan is recorded, 
the Chief Administrative Officer shall notify the 
owner and each tenant of the allowable rent 
increase based upon the amortized loan. If a 
tenant believes that the allowable rent increase 
is inaccurate, the tenant may file a complaint 



3567 



Residential Rehabilitation Loan Program - Terms of 
Conventional RAP Loans 



Sec. 32.75-1. 



with the Chief Administrative Officer within 30 
days of notification. The procedures for handhng 
the complaint follow: 

(1) The Chief Administrative Officer shall 
investigate the tenant's complaint and shall ren- 
der a decision not more than 30 days after 
receiving the complaint; 

(2) If the Chief Administrative Officer de- 
termines that the complaint is valid, the prop- 
erty owner shall reduce the rent in accordance 
with this determination and rebate the excess 
amount collected within 15 days of notice of the 
decision. 

(c) The Chief Administrative Officer shall 
notify the owner, each tenant and the Rent 
Board of the allowable rent increases as estab- 
lished in Subsection (a) above. An owner shall 
only impose subsequent rent increases in accor- 
dance with the provisions set forth in Chapter 37 
of the San Francisco Administrative Code. 
(Amended by Ord. 112-83, App. 3/11/83) 

SEC. 32.74. RENT INCREASE PROTEST 
PROCEDURES. 

When a tenant believes that the rent for his 
or her dwelling unit has been increased above 
the amounts allowed under Section 32.73, or 
increased in excess of the limitations set forth in 
the Rent Ordinance (Chapter 37 of the San 
Francisco Administrative Code), the tenant may 
petition the Rent Board for a rental arbitration 
hearing. (Amended by Ord. 269-82, App. 6/10/82) 

SEC. 32.75. SANCTIONS FOR 
VIOLATION OF RENT INCREASE 
LIMITATIONS. 

If a property owner refuses to rebate excess 
rent collected in violation of the provisions of 
Section 32.73, or fails to comply with the decision 
of the Rent Board with respect to a rent increase 
or increases for his or her tenants, the Rent 
Board shall refer the matter to the Chief Admin- 
istrative Officer with a recommendation that the 
conventioucd RAP loan agreement be termi- 
nated. Upon such recommendation, the Chief 
Administrative Officer may terminate the agree- 
ment and the unpaid amount of the loan shall 



become due and payable immediately. In deter- 
mining whether to declare a loan agreement 
terminated, the Chief Administrative Officer shall 
consider any recommendations of the Citizens 
Advisory Committee for the residential rehabili- 
tation area where the property subject to the 
loan is located. (Amended by Ord. 269-82, App. 
6/10/82) 

SEC. 32.75-1. EVICTIONS. 

Tenants residing in buildings subject to RAP 
loans are subject to eviction only in accordance 
with Section 37.9 of the San Francisco Adminis- 
trative Code. If the property owner evicts, at- 
tempts to evict, or threatens to evict tenants 
because the tenants are seeking to enforce their 
rights under this Chapter, the Chief Administra- 
tive Officer may declare the conventional RAP 
loan agreement terminated, and the unpaid 
amount of the loan shall immediately become 
due and paj'^able. In determining whether to 
declare a loan agreement terminated, the Chief 
Administrative Officer shall consider any recom- 
mendations of the Citizens Advisory Committee 
for the residential rehabilitation area where the 
property subject to the loan is located. (Amended 
by Ord. 269-82, App. 6/10/82) 



[The next page is 3577] 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE VIII: HARDSHIP LOANS 



Sec. 32.80. 

Sec. 32.81. 

Sec. 32.82. 

Sec. 32.83. 

Sec. 32.84. 



Sec. 32.85. 
Sec. 32.86. 
Sec. 32.87. 



Use of Hardship Loans. 

Maximum Amount of Loan and 

Eligibility. 

Term of Hardship Loan. 

Transferability of Hardship 

Loan. 

Use in Conjunction with the 

Conventional Rehabilitation 

Assistance Program Loan. 

Security. 

Additional Loan Terms. 

Source of Funds. 



SEC. 32.80. USE OF HARDSHIP LOANS. 

Hardship loans are to be used only for meet- 
ing rehabilitation standards and incipient viola- 
tions thereof. (Amended by Ord. 116-77, App. 

4/1/77) 

SEC. 32.81. MAXIMUM AMOUNT OF 
LOAN AND ELIGIBILITY. 

(a) A hardship loan of up to $7,500 can be 
made to a low-income applicant who is the owner- 
occupant of a one-to-four dwelling unit building. 

(b) To be eligible for a hardship loan the 
applicant must demonstrate to the satisfaction 
of the Chief Administrative Officer that: (1) the 
applicant's income does not exceed 80 percent of 
the median family income of the San Francisco- 
Oakland Standard Metropolitan Statistical Area 
as determined by the United States Department 
of Housing and Urban Development (HUD); and 
(2) that the applicant does not have other assets 
to correct housing code violations without jeop- 
ardizing the ability to be self supporting. 

(c) An applicant whose income exceeds the 
standards promulgated by HUD, as described in 
Section (b) above, may appeal to the Loan Com- 
mittee for approval of a hardship loan when age, 
health, physical handicap or size of family re- 
quire unusual expenditures by applicant. 
(Amended by Ord. 31-81, App. 1/9/81) 



SEC. 32.82. TERM OF HARDSHIP LOAN. 

A hardship loan shall be due and payable at 
the time of sale or transfer of property unless the 
hardship loan is transferred pursuant to Section 
32.83. (Amended by Ord. 410-77, App. 9/16/77) 

SEC. 32.83. TRANSFERABILITY OF 
HARDSHIP LOAN. 

(a) Upon conveyance of property subject to 
a hardship loan, the hardship loan may be con- 
verted to a conventional RAP loan and assigned 
to the transferee of the property under the same 
circumstances and upon the same terms as are 
applicable to the transfer of a conventional RAP 
loan as provided in Section 32.66. The total 
remaining period of the loan may not extend 
beyond 20 years from the date of the original 
loan. 

(b) Upon transfer of property subject to a 
hardship loan, or an interest therein, to a spouse 
or heir who is otherwise eligible for a hardship 
loan, if the spouse or heir so chooses, the hard- 
ship loan shall be transferred to the spouse or 
heir. 

If the owner of property subject to a hardship 
loan dies, and the hardship loan is not repaid or 
transferred to another person within one year of 
the owner's death, the loan shall as of one year 
from the date of the owner's death, bear interest 
at the then current interest rate charged for 
conventional RAP loans which were made in the 
same year as the hardship loan. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.84. USE IN CONJUNCTION 
WITH THE CONVENTIONAL 
REHABILITATION ASSISTANCE 
PROGRAM LOAN. 

A conventional rehabilitation assistance loan 
may be used to supplement a hardship loan 
provided the property owner otherwise qualifies 
for a conventional RAP loan. (Added by Ord. 
23-74, App. 1/9/74) 



3577 



Sec. 32.85. San Francisco - Administrative Code 3578 

SEC. 32.85. SECURITY. 

Unless provided othei'wise in any bond reso- 
lution issued pursuant to the provisions of this 
Chapter, hardship loans shall be secured by a 
deed of trust naming the City and County as 
beneficiary of the trust. (Added by Ord. 23-74, 
App. 1/9/74) 

SEC. 32.86. ADDITIONAL LOAN TERMS. 

Each provision required to be contained in a 
conventional RAP loan agreement pursuant to 
Section 32.69 through 32.75-1 shall also be con- 
tained in each hardship loan agreement. (Amended 
by Ord. 269-82, App. 6/10/82) 

SEC. 32.87. SOURCE OF FUNDS. 

Any funds given to received by the City and 
County specifically for the purpose of establish- 
ing a hardship loan fund may be accepted by the 
Chief Administrative Officer and may be ac- 
cepted by that purpose. In addition, the Board of 
Supervisors may, from time to time, appropriate 
funds for a hardship loan fund. (Added by Ord. 
23-74, App. 1/9/74) 



[The next page is 3587] 



ARTICLE IX: MISCELLANEOUS PROVISIONS 



Sec. 32.90. Relocation Assistance. 

Sec. 32.91. Administration of Relocation 

Assistance. 
Sec. 32.91-1. Finder's Fee. 
Sec. 32.92. Conversion to State or Federal 

Program. 
Sec. 32.93. Availability of Rehabilitation 

Financing in FACE Areas. 
Sec. 32.94. Construction and Effect of 

Chapter. 
Sec. 32.95. SeverabiHty. 

SEC. 32.90. RELOCATION ASSISTANCE. 

(a) The Chief Administrative Officer shall 
by regulation approved by resolution of the Board 
of Supervisors establish the conditions of eligi- 
bility for relocation benefits and to describe the 
various types of benefits available to eligible 
persons who are displaced by Rehabilitation As- 
sistance Program (RAP) activities and who do 
not receive benefits under the Uniform Reloca- 
tion Assistance and Real Property Acquisition 
Pohcies Act of 1970. 

(b) These are the services and assistance 
which will, at a minimum, be provided to all 
persons or businesses located in a RAP area: 

(1) Not less than 90 days prior to displace- 
ment, residents of the RAP area shall be in- 
formed of the availability of various types of 
relocation benefits, the eligibility requirements 
for relocation benefits and the procedures for 
obtaining relocation benefits. 

(2) Current and continuing information on 
the availability and cost of comparable housing 
and comparable commercial properties and loca- 
tions will be maintained and available to the 
public at the Central Relocation Services Office. 

(3) Information concerning federal and state 
housing programs, disaster loan and other pro- 
grams administered by the Small Business Ad- 
ministration, and other federal or state pro- 



grams offering assistance to displaced persons, 
will be avaihible at the Central Relocation Ser- 
vices Office. 

(4) Persons who believe that they have been 
discriminated against in the rehousing process 
will be referred to the Human Rights Commis- 
sion for either action or referral to the appropri- 
ate law enforcement agencies. (Added by Ord. 
116-77, App. 4/1/77) 

SEC. 32.91. ADMINISTRATION OF 
RELOCATION ASSISTANCE. 

Central Relocation Services shall be respon- 
sible for administration of relocation benefits, 
including the provisions of general services. (Added 
by Ord. 116-77, App. 4/1/77) 

SEC. 32.91-1. FINDER'S FEE. 

(a) Each, individual or family who is eligible 
for replacement housing and who finds his or her 
own dwelling unit which is in code compliance 
shall be paid a finder's fee of $50. 

(b) Those relocated to hotels do not qualify 
for finder's fee. (Added by Ord. 462-78, App. 
10/13/78) 

SEC. 32.92. CONVERSION TO STATE OR 
FEDERAL PROGRAM. 

In the event that funds for rehabilitation 
loans become available through a state or federal 
program on more favorable terms than conven- 
tional RAP loans, every effort shall be made to 
convert to the use of such loans in existing 
Residential Rehabilitation Areas. (Added by Ord. 
23-74, App. 1/9/74) 

SEC. 32.93. AVAILABILITY OF 
REHABILITATION FINANCING m FACE 
AREAS. 

(a) The rehabilitation financing provisions 
of the chapter shall be available to complete the 
projects in the three existing federally-assisted 
code enforcement areas: Bemal Heights, Duboce 



3587 



Sec. 32.93. San Francisco - Administrative Code 3588 

Triangle and Alamo Square. Nothing in this 
Chapter shall be construed or applied to prevent 
the proceeds of bonds issued pursuant to the 
provisions of this Chapter from being used to 
finance residential rehabilitation in these three 
areas. Financing for residential rehabilitation in 
these areas shall be the first priority for use of 
the proceeds of such bonds. 

(b) The Citizens Advisory Committees pre- 
viously established in Bernal Heights, Duboce 
Triangle and Alamo Square shall be the Citizens 
Advisory Committees required by this Chapter 
without regard to Section 32.30. 

(c) For the purposes of this Chapter, Bernal 
Heights, Duboce Triangle and Alamo Square 
shall be deemed designated as Residential Reha- 
bilitation Area as of the date on which this 
ordinance becomes effective. (Added by Ord. 23- 
74, App. 1/9/74) 

SEC. 32.94. CONSTRUCTION AND 
EFFECT OF CHAPTER. 

The provisions of this Chapter, being neces- 
sary for the welfare of the City and County of 
San Francisco and its inhabitants, shall be lib- 
erally construed to effect its purposes. (Added by 
Ord. 23-74, App. 1/9/74) 

SEC. 32.95. SEVERABILITY. 

If any provision of this Chapter, or the appli- 
cation thereof to any person or circumstance, is 
held invalid, the validity of the remainder of the 
chapter and the applicability of such provisions 
to other persons and circumstances shall not be 
affected thereby (Added by Ord. 23-74, App. 
1/9/74) 



[The next page is 3597] 



CHAPTER 33: COMMISSION ON THE STATUS OF WOMEN 



Sec. 33.1. Findings. 

Sec. 33.2. Declaration of Policy. 

Sec. 33.3. Department, Commission, 

Executive Director. 
Sec. 33.4. Powers and Duties. 

Sec. 33.5. Cooperation with Other Groups 

and Individuals. 
Sec. 33.6. Reports. 

Sec. 33.7. Cooperation of Other City and 

County Entities. 

SEC. 33.1. FINDINGS. 

(a) Because of tradition and prejudice, so- 
cial, political, economic, cultural and educational 
restrictions on women through the years, women 
and girls have been denied by virtue of their 
gender, basic human rights resulting in inequi- 
ties in economic, political, legal, cultural and 
social status. Despite obvious deprivations of 
opportunity to attain equality with men, women 
have made and continue to make substantial 
contributions in diverse areas of human activity 
and enterprise. Women have initiated move- 
ments for social and political emancipation, hu- 
man welfare and world peace. The disadvan- 
taged status of women and girls is, however, 
inimical to the public welfare in that it prevents 
women and girls from fully developing their 
individual potentials and from contributing fully 
to the cultural and economic life of the commu- 
nity. In view of the long tradition of according 
women and girls an inferior status in society, 
nothing less than a concerted effort at the na- 
tional. State and local levels will result in true 
equality of the sexes. 

(b) Despite remedial legislation and in- 
creased public awareness of the disparity in the 
treatment of women in our society, women and 
girls continue to be treated unequally. Women in 
the workforce continue to earn, on average, less 
than men. The skills and abilities that women 
bring to job fields that have not historically been 



open to them remain underutilized. Women con- 
tinue to perform only a small percentage of City 
contracts. Women continue to constitute a dis- 
proportionate percentage of the population earn- 
ing the miniiQum wage and/or living in poverty. 
In addition, reported cases of violence against 
women and girls have risen dramatically. Vio- 
lence against women and girls now accounts for 
approximately one quarter of assault arrests and 
homicides in San Francisco. 

(c) There is a continued need for a govern- 
mental body to monitor the status of women and 
girls, including the status and unique problems 
of women and girls of color, homeless women and 
girls, immigrant women and girls, lesbians and 
low-income women and girls, both within City 
and County government and in the private sec- 
tor, to monitor complaints about unlawful and 
unequal treatment of women, to investigate in- 
equalities, and to propose remedies. (Added by 
Ord. 28-75, App. 2/11/75; amended by Ord. 271- 
89, App. 7/28/89; Ord. 131-98, App. 4/17/98) 

SEC. 33.2. DECLARATION OF POLICY. 

It is the policy of the City and County of San 
Francisco to give every inhabitant of the City 
and County, woman or man, girl or boy, equal 
economic, political, social and educational oppor- 
tunities and to give equal services and protection 
by public agencies. It is the policy of the City and 
County of San Francisco to keep the public 
informed on developments in the legal amd social 
status of women and girls; to develop and dis- 
tribute pertinent information and recommenda- 
tions to the City and County agencies and to the 
general public; to provide expert advice and 
assistance to the offices, agencies, boards, depart- 
ments, and employees of the City and County in 
undertaking efforts to assure equality in the 
treatment of the sexes; and to officially encour- 
age private persons and groups to take steps to 
remove the barriers in the struggle of both women 
and men for equal opportunities resulting from 



3597 



Sec. 33.2. 



San Francisco - Administrative Code 



3598 



tradition and prejudice as well as the educa- 
tional, economic, political, legal and social restric- 
tions of the past. It is the policy of the City and 
County of San Francisco that the Mayor, the 
Board of Supervisors, and all City and County 
commissions, boards and department heads shall 
consult with the Commission on matters relating 
to gender. (Added by Ord. 28-75, App. 2/11/75; 
amended by Ord. 271-89, App. 7/28/89; Ord. 
287-96, App. 7/12/96; Ord. 131-98, App. 4/17/98) 

SEC. 33.3. DEPARTMENT, 
COMMISSION, EXECUTIVE DIRECTOR. 

The Department shall be known as the De- 
partment on the Status of Women. The Commis- 
sion shall formulate, evaluate and approve goals, 
objectives, plans and programs, set policies for 
the Department and carry out the additional 
functions enumerated in the Charter. The Execu- 
tive Director shall be the department head and 
carry out the functions of department head as 
enumerated in Section 4. 126 of the Charter. In 
selecting the Commission's staff, the Executive 
Director shall consider the diverse makeup of the 
general public of San Francisco, including the 
racial, ethnic, age and sexual orientation groups 
in the City and County. The Executive Director 
shall also ensure that staff have demonstrated 
commitment and expertise in working on behalf 
of women's issues and gender equity. (Amended 
by Ord. 363-80, App. 8/7/80; Ord. 271-89, App. 
7/28/89; Ord. 131-98, App. 4/17/98; Ord. 106-00, 
File No. 000537, App. 5/26/2000) 

SEC. 33.4. POWERS AND DUTIES. 

The Commission and its Department shall 
have the power and the duty to: 

(a) Prepare and disseminate educational and 
informational material relative to the role that 
tradition and prejudice and the deprivation of 
equal opportunities in areas such as education 
and employment have played in keeping women 
and girls of all races, creeds, ages, marital status 
and sexual orientation from developing their full 
individual potentials and from contributing fully 
to the cultural and economic life of the commu- 
nity; 



(b) Hold public hearings on matters rel- 
evant to the general scope of the Commission, 
and subpoena records and witnesses in connec- 
tion with such hearings; 

(c) Review national. State and local legisla- 
tion that may have an impact on the status of 
women and girls and communicate the 
Commission's position regarding the proposed 
legislation to the appropriate legislative bodies, 
so long as the Commission's position on State 
and federal legislation does not conflict with any 
official position taken by the City and County; 

(d) Analyze the composition of boards and 
commissions by gender and advise the Mayor 
and the Board of Supervisors on the equity of 
appointments. Develop and maintain a Talent 
Bank of Women that can be used in a variety of 
ways, including but not limited to assisting the 
Commission on the Status of Women in nominat- 
ing qualified women for appointment by the 
Mayor to vacancies on boards and commissions 
of the City and County; 

(e) Study, make recommendations to and 
advocate for the Mayor, the Board of Supervisors 
and departments to implement programs that 
promote the economic development of women. 
The Commission's responsibilities shall include, 
but not be limited to: 

(1) Advocating the Human Resources De- 
partment to develop and implement programs 
that assist in recruiting and employing qualified 
women applicants for those positions filled through 
the Human Resources Department which tradi- 
tionally employ few women; making recommen- 
dations regarding terminology used in job an- 
nouncements, recruitment techniques, job 
qualifications, salary schedules, training and 
promotional practices, 

(2) Studjdng job categories that tradition- 
ally are filled primarily by women or primarily 
by men to determine whether the rate of com- 
pensation in the traditionally female jobs com- 
pares reasonably and favorably with the rate of 
compensation in the traditionally male jobs, tak- 
ing into consideration the training, experience. 



3599 



Commission on the Status of Women 



Sec. 33.4. 



mental and physical effort and responsibility 
required and the working conditions involved, 
and take necessary steps to implement equity, 

(3) Stud3dng, developing policies and advo- 
cating for the Human Resources Department 
and other City departments to implement poli- 
cies addressing the special employment prob- 
lems of women, including but not limited to the 
need for family-friendly policies, flexible work 
options, and family care resources, 

(4) Studying, developing policies and advo- 
cating for the elimination of barriers to employ- 
ment and advancement for women, including but 
not limited to on-the-job training and retraining 
for women who have been out of the employment 
market for extended periods due to family re- 
sponsibilities and policies and practices address- 
ing "glass-ceiling issues." 

(5) Advising the Civil Service Commission 
and Human Resources Department on the form 
of reports regarding City and County employees 
and members of boards and commissions regard- 
ing sex, race, salary level, job classification and 
other disaggregated statistical data, and to de- 
velop an analysis of the data in regard to the 
areas of concern to the Commission, 

(6) Monitoring the reports of complaints of 
all forms of discrimination against women (in- 
cluding sexual harassment) received and for- 
warded by the Department of Human Resources 
pursuant to Administrative Code Section 33.7, 
and consult with and make recommendations to 
the Department of Human Resources concerning 
the handling of such complaints, 

(7) Assisting in the preparation of training 
programs and materials with respect to the eco- 
nomic development of and employment discrimi- 
nation against women and girls, including sexual 
harassment, for City and County departments 
and agencies; 

(f) Cooperate with and make recommenda- 
tions to law enforcement agencies and officials 
concerning the treatment of women and girls in 
the City and County's correctional and juvenile 
justice syste^m and enforcement of laws that have 
a particular impact on women and girls, includ- 



ing but not limited to laws relating to violence 
against women and girls, rape and prostitution; 

(g) Cooperate with, make recommendations 
to, and advocate for the Communit}'^ College 
District and the San Francisco Unified School 
District to develop and implement progirams and 
practices that have the purpose of furthering the 
objectives of this ordinance, including but not 
limited to recommendations and advocacy con- 
cerning in-sei'vice training, sex-role stereotyping 
in textbooks, sexual harassment, violence against 
women and girls, courses and methods of provid- 
ing role models for female students who may be 
interested in areas of employment not tradition- 
ally filled by women, and ensuring that women 
and girls have equal access to and opportunity in 
developing areas of technology; 

(h) Provide information, guidance and tech- 
nical assistance to other public agencies and 
private persons, organizations and institutions 
engaged in activities and programs intended to 
eliminate prejudice and discrimination against 
women and girls because of their gender, and to 
serve as liaison between the public and private 
sectors on matters affecting women and girls in 
the community; 

(i) Cooperate with and make written recom- 
mendations to the Board of Supervisors, the 
Mayor, City and County agencies, boards and 
commissions and City and County ofliicials re- 
garding the development and implementation of 
programs and practices for the purpose of fur- 
thering the objectives of this ordinance, includ- 
ing but not limited to, recommendations with 
respect to improving the City and County's pro- 
cedures for enforcing prohibitions against all 
forms of discrimination against women and girls, 
including sexual harassment, within the City 
and County government and with its contrac- 
tors; 

(j) Investigate and mediate, at the request 
of a party and within the limitations of staff time 
and resources, any incidents of discrimination 
against women because of their status as women 
that are not within the exclusive jurisdiction of 
some federal or State agency, the Human Re- 
sources Department or the Human Rights Com- 



Sec. 33.4. 



San Francisco - Administrative Code 



3600 



mission, and make specific recommendations to 
the involved parties as to the methods for ehmi- 
nating discrimination against women; 

(k) Prepare, encourage and coordinate pro- 
grams of voluntary action to reduce or eliminate 
existing inequalities and disadvantages in both 
the public and private sector resulting from 
prejudice, tradition and past discrimination 
against women and girls; 

(1) Coordinate the City's efforts to establish 
a comprehensive response to violence against 
women and girls in cooperation with City depart- 
ments and the community at large. The 
Commission's responsibilities shall include, but 
not be limited to: 

(1) Overseeing and administering funds al- 
located to the Commission for programs regard- 
ing violence against women and girls; 

(2) Receiving reports from all City depart- 
ments funding programs regarding violence 
against women; 

(m) Review the programs and budget of any 
other City and County department or agency 
where there are reasonable grounds for believing 
that department or agency is not compljdng with 
this Article or is otherwise not protecting the 
rights of women and girls fully; and, if necessary, 
to request the Controller to perform a manage- 
ment or budget audit with respect to those defi- 
ciencies; 

(n) Study and monitor all agencies, depart- 
ments, boards and commissions of the City and 
County to identify patterns and practices that 
have a discriminatory effect upon women and 
girls; 

(o) Carry out the provisions of Section 12K 
of the San Francisco Administrative Code imple- 
menting, locally, the principles of the United 
Nations Convention on the Elimination of All 
Forms of Discrimination Against Women 
(CEDAW); 

(p) Coordinate with other City departments, 
policy bodies and community groups to develop 
an integrated services plan for women and girls. 
(Added by Ord. 28-75, App. 2/11/75; amended by 
Ord. 271-89, App. 7/28/89; Ord. 64-92, App. 2/28/ 
92; Ord. 335-95, App. 10/27/95; Ord. 131-98, App. 
4/17/98; Ord. 106-00, File No. 000537, App. 5/26/ 
2000) 



SEC. 33.5. COOPERATION WITH OTHER 
GROUPS AND INDIVIDUALS. 

The Commission shall consult with and main- 
tain contact with groups and individuals who are 
concerned with the status of women and girls or 
who are primarily responsible for assuring gen- 
der equity and women's human rights. (Added by 
Ord. 28-75, App. 2/11/75; amended by Ord. 131- 
98, App. 4/17/98) 

SEC. 33.6. REPORTS. 

The Commission shall render written reports 
of its activities to the Mayor and the Board of 
Supervisors not less than once every six months. 
(Added by Ord. 28-75, App. 2/11/75; amended by 
Ord. 271-89, App. 7/28/89; Ord. 131-98, App. 
4/17/98) 

SEC. 33.7. COOPERATION OF OTHER 
CITY AND COUNTY ENTITIES. 

(a) The Mayor, Board of Supervisors, and 
each commission, board, department and agency 
of the City and County shall fully cooperate with 
the Commission in fulfilling the provisions and 
purposes of this Article and shall regularly con- 
sult with the Commission on matters relating to 
women. 

(b) All agencies, departments, boards and 
commissions of the City and County, with the 
exception of the City Attorney, shall make quar- 
terly reports to the Human Resources Depart- 
ment regarding all complaints of gender or sex 
discrimination file by their employees. Those 
reports shall include: (1) the number of com- 
plaints filed that quarter; (2) the specific type of 
discrimination alleged in each complaint filed; 
(3) the department, bureau or division in which 
each complaint arose; (4) the harm allegedly 
suffered by the complainant; (5) the cost to the 
department in handling the matter, when avail- 
able; (6) the status of all outstanding complaints, 
including, but not limited to a report that the 
complaint is being investigated or mediated; (7) 
the findings in all completed cases; and (8) what, 
if any, corrective action was taken. The Human 
Resources Department shall compile the infor- 
mation regarding the complaints and report it to 
the Commission quarterly. The Human Re- 



3601 Commission on the Status of Women Sec. 33.7. 



sources Department shall consult with the Com- 
mission concerning the policy manner in which 
such complaints are handled. The Human Re- 
sources Department shall also send the Commis- 
sion any and all reports they make to the Board 
of Supervisors and/or the Mayor concerning any 
type of discrimination against women (including 
sexual harassment). The Human Resources De- 
partment shall provide the Commission, upon 
request, access to pertinent, nonconfidential per- 
sonnel information with respect to current City 
and County employees and applicants for em- 
ployment including, but not limited to: (1) an 
employee's or applicant's eligibility or certifica- 
tion status; and (2) any workforce utilization or 
salary analysis performed by the Human Re- 
sources Department. 

(c) The City Attorney shall submit to the 
Commission a monthly report of settlements, 
which includes lawsuits and claims filed by fe- 
male employees of the City and County alleging 
employment discrimination. The report shall in- 
clude: (1) the name of the case or claimant; (2) 
the nature of the case; (3) the damages allegedly 
sufi*ered; and (4) the amount of the settlement. 
The City Attorney shall also provide, quarterly, a 
summary of litigation judgments in favor of and 
against the City and County, including all law- 
suits filed by female employees alleging discrimi- 
nation. The City Attorney shall alert the Com- 
mission to the filing of any lawsuit against the 
City and County alleging any form of discrimi- 
nation against women and shall provide a monthly 
report of all administrative claims filed against 
the City, including any claims alleging discrimi- 
nation against women. Upon request, the City 
Attorney shall forward to the Commission a copy 
of any complaint or claim filed with or served 
upon the City Attorney. (Added by Ord. 271-89, 
App. 7/28/89; amended by Ord. 64-92, App. 3/28/ 
92; Ord. 287-96, App. 7/12/96; Ord. 131-98, App. 
4/17/98; Ord. 106-00, File No. 000537, App. 5/26/ 
2000) 



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CHAPTER 34: NOTIFICATION TO ASSESSOR CONCERNING 
ZONING RECLASSIFICATIONS OF PROPERTY, 
CONDITIONAL USE PERMITS AND VARIANCES 

Article Page 

L NOTIFICATION TO ASSESSOR 3615 

IL [RESERVED] 3625 



3613 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE I: NOTIFICATION TO ASSESSOR 



Sec. 34.1. Zoning Reclassification Enacted 

by Board of Supervisors. 
Sec. 34.2. Conditional Use Authorized by 

City Planning Commission. 
Sec. 34.3. Conditional Use; Appeal to 

Board of Supervisors. 
Sec. 34.4. Variance Granted by Zoning 

Administrator. 
Sec. 34.5. Variance; Appeal to Board of 

Appeals. 

SEC. 34.1. ZONING RECLASSIFICATION 
ENACTED BY BOARD OF SUPERVISORS. 

Whenever the Board of Supervisors shall, by 
ordinance, enact a zoning reclassification of prop- 
erty pursuant to Charter Section 4.105 and the 
Planning Code, the Clerk of the Board of Super- 
visors shall immediately notify the Assessor of 
such action in writing. (Added by Ord. 113-75, 
App. 4/4/75; amended by Ord. 254-00, File No. 
001548, App. 10/27/2000) 

SEC. 34.2. CONDITIONAL USE 
AUTHORIZED BY CITY PLANNING 
COMMISSION. 

Whenever the Planning Commission shall, 
by resolution, authorize a conditional use pursu- 
ant to the Planning Code, the Zoning Adminis- 
trator shall immediately transmit a copy of such 
resolution to the Assessor. (Added by Ord. 113- 
75, App. 4/4/75; amended by Ord. 254-00, File 
No. 001548, App. 10/27/2000) 

SEC. 34.3. CONDITIONAL USE; APPEAL 
TO BOARD OF SUPERVISORS. 

Whenever the Board of Supervisors shall, by 
motion, disapprove the decision of the Planning 
Commission on appeal and authorize a condi- 
tional use, pursuant to Charter Section 4.105 
and the Planning Code, the Clerk of the Board of 
Supervisors shall immediately notify the Asses- 
sor of such action in writing. (Added by Ord. 
113-75, App. 4/4/75; amended by Ord. 254-00, 
File No. 001548, App. 10/27/2000) 



SEC. 34.4. VARIANCE GRANTED BY 
ZONING ADMINISTRATOR. 

Whenever the Zoning Administrator shall 
issue a decision granting a variance pursuant to 
Charter Section 4.105 and the Planning Code, 
the Zoning Administrator shall immediately trans- 
mit a copy of such decision to the Assessor. 
(Added by Ord. 113-75, App. 4/4/75; amended by 
Ord. 254-00, File No. 001548, App. 10/27/2000) 

SEC. 34.5. VARIANCE; APPEAL TO 
BOARD OF APPEALS. 

Whenever the Board of Appeals shall issue a 
decision granting or modifying a variance on 
appeal from the Zoning Administrator, pursuant 
to Charter Sections 4.105 and 4.106 and the 
Planning Code, the Executive Secretary of the 
Board of Appeals shall immediately transmit a 
copy of such decision to the Assessor. (Added by 
Ord. 113-75, App. 4/4/75; amended by Ord. 126- 
97, App. 4/9/97; Ord. 254-00, File No. 001548, 
App. 10/27/2000) 



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ARTICLE II: [RESERVED] 



Sec. 34.6. 

(Added by Ord. 113-75, App. 4/4/75; repealed by 

Ord. 254-00, File No. 001548, App. 10/27/2000) 



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CHAPTER 35: RESIDENTIAL AND INDUSTRIAL COMPATIBILITY AND PROTECTION 



Sec. 35.1. 
Sec. 35.2. 
Sec. 35.3. 
Sec. 35.4. 
Sec. 35.5. 
Sec. 35.6. 



Sec. 35.7. 



Sec. 35.8. 



Short Title. 
Declaration of Policy. 
Definitions. 

Protection of Industrial Uses. 
Exemptions and Nonapplication. 
Notice Requirements for 
Transfer of Real Property for 
Residential Use. 

Planning Department and 
Commission Review of 
Residential Projects. 
Severability. 



SEC. 35.1. SHORT TITLE. 

This Chapter may be referred to as the Resi- 
dential and Industrial Compatibility and Protec- 
tion Ordinance. (Added by Ord. 223-06, File No. 
060265, App. 8/11/2006) 

SEC. 35.2. DECLARATION OF POLICY. 

It shall be the policy of the City and County 
of San Francisco to protect its existing and 
future industrial businesses from potentially in- 
compatible adjacent and nearby development 
provided that such industrial businesses are 
conducted and maintained in a manner consis- 
tent with proper and accepted customs and stan- 
dards and in accordance with all applicable fed- 
eral, state, and local laws and regulations. The 
City and County of San Francisco encourages the 
use of best available control technologies and 
best management practices whenever possible to 
further reduce the potential for incompatibility 
with other uses, including residential. 

Furthermore, it shall be the policy of the City 
and County of San Francisco to protect the 
future residents of industrial and mixed-use neigh- 
borhoods by providing for a notification process 
so that such residents are made aware of some of 
the possible consequences of moving to an indus- 
trial or mixed use neighborhood and by encour- 
aging and, if possible, requiring, features in any 



new residential construction designed to pro- 
mote the compatibility of residential and adja- 
cent or nearby industrial uses. (Added by Ord. 
223-06, File No. 060265, App. 8/11/2006) 

SEC. 35.3. DEFINITIONS. 

For the purposes of this Chapter, the follow- 
ing definitions shall apply. 

(a) "Adjacent Property" means all real prop- 
erty inside or within 150 feet of an Industrial 
Use Zoning District. 

(b) "Eligible Industrial Use" means any le- 
gally existing, including legally non-conforming, 
or future Industrial Use, as defined in this Sec- 
tion, conducted or maintained for industrial pur- 
poses in a manner consistent with proper and 
accepted customs and standards, as established 
and followed by similar industrial uses in the 
same neighborhood if such uses exist, and in 
accordance with all applicable federal, state, and 
local laws and regulations. 

(c) "Industrial Use" means any industrial 
use as defined in the Planning Code, including, 
but not limited to. Automotive as defined in 
Planning Code Section 223, Animal Services as 
defined in Planning Code Section 224, ""iVholesal- 
ing. Storage, Distribution and Open Air Han- 
dling of Materials and Equipment as defined in 
Planning Code Section 225, Manufacturing and 
Processing as defined in Planning Code Section 
226. Other Uses as defined in Planning Code 
Section 227, and Light Manufacturing. Whole- 
sale Sales, Storage as defined in Planning Code 
Section 890.54. Upon adoption of the permanent 
Eastern Neighborhoods Zoning Controls. "Indus- 
trial Use" shall also include Production, Design, 
and Repair Uses ("PDR Uses"), as defined in the 
zoning controls, including, but not limited to, 
Publishing, Audio/Visual, Arts, Fashion, Trans- 
port, Food/Event, Interior Design. Construction, 
Equipment, Motor Vehicles, and Other PDR uses. 



3635 



Supp. No. 1, September 2006 



Sec. 35.3. 



San Francisco - Administrative Code 



3636 



(d) "Industrial Use Zoning District" means 
a zoning district designated C-M (Heavy Com- 
mercial), M-1 (Light Industrial), M-2 (Heavy 
Industrial), SPD (South Park), RSD (Residential/ 
Service Mixed Use), SLR (Service/Light Industrial/ 
Residential Mixed Use), SLI (Service/Light In- 
dustrial), SSO (Service/Secondary Office), or 
MB-CI (Mission Bay-Commercial Industrial), 
Upon adoption of the permanent Eastern Neigh- 
borhoods Zoning Controls, "Industrial Use Zon- 
ing District" shall also include a zoning district 
within the Eastern Neighborhoods Plan Area in 
which PDR is a principally permitted use, includ- 
ing, but not limited to, zoning districts desig- 
nated PDR Zone, Employment and Business 
Development Zone, or Urban Mixed Use Zone. 

(e) "Residential Use" means the use of any 
real property as a dwelling unit or units, regard- 
less of whether it is a primary residence. 

(f) "Transfer" means, but is not limited to, 
the following: sale or lease. (Added by Ord. 
223-06, File No. 060265, App. 8/11/2006) 

SEC. 35.4. PROTECTION OF 
INDUSTRIAL USES. 

No Eligible Industrial Use shall be or become 
a public or private nuisance due to any changed 
condition in Adjacent Property after the Indus- 
trial Use has been in operation for more than two 
years if it was not a nuisance at the time it was 
estabhshed. (Added by Ord. 223-06, File No. 
060265, App. 8/11/2006) 

SEC. 35.5. EXEMPTIONS AND 
NONAPPLICATION. 

(a) The provisions of Section 35.4 shall not 
apply whenever a nuisance results from the 
negligent, improper, or illegal operation of any 
Industrial Use. 

(b) This Chapter is not intended to super- 
cede or limit any other provisions of the Munici- 
pal Code with regard to the regulation and 
control of Industrial Uses, including, but not 
limited to, Article 11 of the Health and Safety 
Code. 



(c) This Chapter shall not authorize a change 
in use or uses where such is otherwise controlled 
or prohibited by the Municipal Code or any state 
or federal law. 

(d) This Chapter shall not authorize the 
continuation or expansion of a nonconforming 
use where such is otherwise controlled or prohib- 
ited by the Municipal Code. (Added by Ord. 
223-06, File No. 060265, App. 8/11/2006) 

SEC. 35.6. NOTICE REQUIREMENTS 
FOR TRANSFER OF REAL PROPERTY 
FOR RESIDENTIAL USE. 

(a) Notice Requirement. The transferor 
of Adjacent Property for Residential Use must 
provide notice to the transferee as follows. 

(1) For all transfers of Adjacent Property 
having any Residential Use, the transferor shall 
provide the disclosure described in Subsection 
35.6(a)(2) on a written document. This notice 
shall be provided for a lease prior to the tenant(s) 
signing a lease or for a purchase agreement for 
the transfer of the Adjacent Property at the time 
required by California Civil Code Section 1102.3. 

(2) Disclosure. The disclosure shall include 
a citation to this Section 35.6 and a written 
statement containing substantially the following 
language in at least 12-point font: 

"DISCLOSURE OF ADJACENT INDUSTRIAL 

USES 

You are purchasing or leasing property 
that may be adjacent to an existing indus- 
trial use. Industrial uses may subject you 
to inconveniences or discomfort arising from 
industrial operations, which may include, 
but are not limited to: noise, odors, dust, 
chemicals, smoke, operation of machinery, 
and loading and unloading operations. One 
or more of these tj^pes of inconveniences 
may occur even if the industrial use is 
operating in conformance with existing laws 
and regulations and locally accepted cus- 
toms and standards for operations of such 
use. If you live near industrial uses, you 
should be prepared to accept such inconve- 
niences or discomfort as normal and a 



Supp. No. 1, September 2006 



3637 



Residential and Industrial Compatibility and Protection 



Sec. 35.8. 



necessary aspect of living in a neighbor- 
hood with mixed industrial and residential 
uses. Transferor shall maintain a copy of 
this disclosure in the transferor's records 
for not less than two years, and a copy shall 
be provided to the City or the transferee 
upon request." 

(b) Affidavit of Disclosure. The transf- 
eror shall make and sign, upon penalty of per- 
jury, an affidavit stating that the transferor 
provided the disclosure required by this Section 
and shall attach a copy of the notice actually 
provided; provided, however, that the attach- 
ment need not also include a copy of the then- 
current text of this Chapter. This affidavit, with 
the attached notice provided, shall be main- 
tained in the transferor's records for not less 
than two years, and a copy shall be provided to 
the City or the transferee upon request. 

(c) Civil Penalty for Failure to Provide 
Notice. Any person who fails to provide the 
disclosure required by this Section may be liable 
for a civil penalty of not less than $500 for each 
failure to provide said disclosure. This penalty 
may be assessed and recovered in a civil action 
brought in the name of the people of the City by 
the City Attorney in any court of competent 
jurisdiction. The City Attorney also may seek 
recovery of the attorneys' fees and costs incurred 
in bringing a civil action pursuant to this Sec- 
tion. 

(d) Private Right of Action. The current 
or former transferee of the Adjacent Property 
transferred for Residential Use may institute a 
civil proceeding for money damages of not less 
than $500 for each failure to provide the disclo- 
sure required by this Section 35.6, and whatever 
other relief the Court deems appropriate. The 
prevailing party shall be entitled to reasonable 
attorney's fees and costs pursuant to order of the 
Court. The remedy available under this subsec- 
tion shall be in addition to any other existing 
remedies that may be available to the transferee. 

(e) This Chapter shall not create any pri- 
vate right of action against the City. The City 
shall have no duty or liability based on any 
failure to achieve the disclosure required by this 



Chapter or based on the City's failure to pros- 
ecute. (Added by Ord. 223-06, File No. 060265, 
App. 8/11/2006) 

SEC. 35.7. PLANNING DEPARTMENT 
AND COMMISSION REVIEW OF 
RESIDENTIAL PROJECTS. 

The Planning Department and Commission 
shall consider, among other considerations, the 
compatibility of uses when approving Residen- 
tial Uses adjacent to or near existing Industrial 
Uses and to take all reasonably available means 
through the City's design review and approval 
processes to ensure that the design of such new 
residential development projects is sensitive to 
both the existing Industrial Uses and the future 
residents of the new development. Such consid- 
erations may include, among others: 

(a) The proposed project's consistency with 
the Industrial Area Design Guidelines; 

(b) The proposed project's overall design, 
acoustical treatment, and ventilation to achieve 
interior noise levels and ventilation compatible 
with residential standards; and 

(c) The location of non-habitable spaces or 
spaces such as closets, bathrooms, kitchens, and/or 
landscaping so that such spaces may provide a 
buffer between the proposed habitable residen- 
tial areas and any common property line with 
Industrial Uses. (Added by Ord. 223-06, File No. 
060265, App. 8/11/2006) 

SEC. 35.8. SEVERABILITY. 

In the event that a court or agency of compe- 
tent jurisdiction holds that a Federal or State 
law, rule, or regulation invalidates any clause, 
sentence, paragraph, or section of this Chapter 
or the application thereof to any person or cir- 
cumstances, it is the intent of the Board of 
Supervisors that the court or agency sever such 
clause, sentence, paragraph, or section so that 
the remainder of this ordinance shall remain in 
effect. (Added by Ord. 223-06, File No. 060265, 
App. 8/11/2006) 



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Supp. No. 1, September 2006 



CHAPTER 36: COMMUNITY IMPROVEMENTS AREA PLANS AND PROGRAMS 



Sec. 36.1. Applicability. 

Sec. 36.2. Intent. 

Sec. 36.3. Interagency Planning and 

Implementation Committees. 
Sec. 36.4. Annual Progress Reports. 

SEC. 36.1. APPLICABILITY. 

(a) The Planning Department is currently 
engaged in comprehensive planning of areas of 
the City being referred to as the proposed Market/ 
Octavia, East SOMA, West SOMA, Inner Mis- 
sion, Lower Potrero/Showplace Square, and Cen- 
tral Waterfront plan areas. These efforts are 
expected to lead to new or modified area plans of 
the City's General Plan ("Area Plans") that ad- 
dress urban design, open space, transportation, 
housing, and community facilities and present 
detailed rezoning and policy proposals that cover 
land use, housing, community facilities, open 
space, and transportation. The boundaries of 
these areas are generally as outlined in docu- 
ments posted from time to time on the Planning 
Department's web page. 

(b) As part of the comprehensive planning 
leading to preparation and adoption of each Area 
Plan, the Planning Department, and, in the West 
SOMA area, the Planning Department with the 
advice and input of the Western SoMa Citizens 
Planning Task Force, is analyzing the existing 
deficiencies and improvement needs of each area 
and the deficiencies and improvement needs that 
will be created by or exacerbated by the new 
development permitted by the proposed Area 
Plan. In the other areas covered by this legisla- 
tion, the Planning Department should also con- 
sider the advice and input of citizen groups, 
Based on this analysis, the Planning Depart- 
ment shall prepare for each area a document 
that identifies the various facilities, infrastruc- 
ture and other community improvements needed 
to address the identified conditions and needs 
(the "Community Improvements Plan") and an 
implementation program that summarizes the 



estimated costs of the various facilities and im- 
provements identified in the Community Improve- 
ments Plan, proposes specific funding strategies 
and sources to finance them, identifies the re- 
sponsible and supporting agencies, and outlines 
the steps, including as may be needed more 
detailed planning, program design, and environ- 
mental evaluation, required to refine the propos- 
als and implement them (the "Implementation 
Program."). In the West SOMA area the City is 
preparing the Community Improvements Plan 
and Implementation Program with the advice 
and in put of the Western SoMa Citizens Plan- 
ning Task Force. In the other areas covered by 
this legislation, the Planning Department should 
also consider the advice and input of citizen 
groups. The funding sources proposed in the 
Implementation Program may include, but are 
not limited to, use of federal, State, and local 
public resources, coramunity facility, community 
benefit or other forms of assessment districts, 
and area-specific development impact fees, as 
may be detailed in the final adopted respective 
area plans. (Added by Ord. 265-06, File No. 
061206, App. 10/27/2006) 

SEC. 36.2. INTENT. 

This Article 36 is intended to provide mecha- 
nisms that will enhance the participation in the 
preparation and implementation of the Commu- 
nity Improvements Plans and Implementation 
Programs by the various City departments, of- 
fices; and agencies that will be responsible for 
their implementation and provide a imeans by 
which the various parties interested in realiza- 
tion of the Community Improvements Plans and 
Implementation Programs can remain informed 
about and provide input to and support for their 
implementation. (Added by Ord. 265-06, File No. 
061206, App. 10/27/2006) 

SEC. 36.3. INTERAGENCY PLANNING 
AND IMPLEMENTATION COMMITTEES. 

For each area subject to the provisions of this 
Ai'ticle, there shall be an Interagency Planning 



3645 



Supp. No. 2, October 2006 



Sec. 36.3. 



San Francisco - Administrative Code 



3646 



and Implementation Committee that shall be 
comprised of representatives of the departments, 
offices, and agencies whose responsibilities in- 
clude provision of one of more of the community 
improvements that are likely to be needed or 
desired in a Plan Area. In addition to the Plan- 
ning Department, these departments, offices, 
and agencies shall, if relevant, include, but are 
not limited to, the County Transportation Author- 
ity, Municipal Transportation Agency, Depart- 
ment of Public Works, Library Commission, Re- 
development Agency, Mayor's Office of Economic 
and Workforce Development, Mayor's Office of 
Community Development, Public Utilities Com- 
mission, Department of Recreation and Parks, 
Department of the Environment, and the Office 
of City Greening. The Interagency Planning and 
Implementation Committees shall be chaired by 
the Planning Director or his or her designee. It 
shall be the responsibility of each such depart- 
ment, office, or agency to participate, using its 
own administrative funds, in the preparation of 
that portion of a Community Improvements Plan 
falling within its area of responsibility and, after 
Area Plan adoption, to participate in the detailed 
design of the community improvement or im- 
provements and to seek the funding for its imple- 
mentation as provided in the Implementation 
Program, as amended from time to time. (Added 
by Ord. 265-06, File No. 061206, App. 10/27/ 
2006) 

SEC. 36.4. ANNUAL PROGRESS 
REPORTS. 

(a) Preparation, After the final adoption 
of an Area Plan, including the Community Im- 
provements Plan and Implementation Program, 
for a portion of the City subject to the provisions 
of this Article, the Planning Department shall 
prepare for each Area Plan a brief Annual Progress 
Report indicating the status of implementation 
of the Area Plan and its various components. It 
shall contain information regarding the progress 
made to date in implementing the Area Plan and 
its various components, including a summary of 
the individual development projects, public and 
private, that have been approved during the 
report period, and shall also describe the steps 



taken regarding implementation of the various 
community improvements in accordance with 
the Plan's projected phasing and update and, if 
necessary, modify and amend, the contents and/or 
phasing of the Community Improvements Plan 
and Implementation Program. It shall also in- 
clude proposed departmental work programs and 
budgets for the coming fiscal year that describe 
the steps to be taken by each responsible depart- 
ment, office, or agency to implement the Com- 
munity Improvements Plan. It shall be the re- 
sponsibility of each department, office and agency 
to provide to the Planning Department the fol- 
lowing: (i) information regarding its progress in 
implementing the community improvement(s) 
for which it is responsible; (ii) any changes in the 
time-phased schedule for implementing the im- 
provement(s); and (iii) information regarding its 
relevant proposed work program and efforts to 
secure the funding sources for implementing the 
improvement(s) in the coming year. The Plan- 
ning Department shall summarize this informa- 
tion together with information regarding it's own 
progress and relevant proposed work program 
and budget into the Annual Progress Report. 

(b) Annual Hearing at Planning Com- 
mission. Prior to the annual submission of the 
Planning Department budget requests to the 
Mayor's Budget Office, the Planning Commis- 
sion shall hold a public hearing on each Area 
Plan's Annual Progress Report. Notice of the 
hearing shall be provided at least 30 days prior 
to the meeting as follows: mailed notice to all 
organizations and individuals who have specifi- 
cally requested mailed notice and published no- 
tice at least once in an official newspaper of 
general circulation. The Report shall be posted 
on the Department's web page for at least 30 
days before the hearing. This hearing may be 
held as part of the Planning Commission's hear- 
ing on the Departmental budget request. 

(c) Submission to Relevant Committee 
of the Board of Supervisors. The Annual 
Progress Report shall also be submitted to the 
committee of the Board of Supervisors respon- 
sible for land use matters, which Committee may 
schedule a public hearing. Further, the Board 
urges the Planning Department Director and/or 



Supp. No. 2, October 2006 



3647 Sec. 36.4. 



his or her designee who chairs the Interagency 
Planning and Implementation Committee for 
each Area Plan to be available to provide a 
briefing and answer questions about the Report 
at the appropriate Board of Supervisors commit- 
tee hearing. 

(d) Termination. This Annual Progress Re- 
port requirement may be terminated by the 
Planning Commission upon its determination 
after a public hearing, noticed at least 30 days 
prior to the meeting, that full implementation of 
the Community Improvements Plan and Imple- 
mentation Program has been substantially 
achieved and that continuation of the Annual 
Progress Report requirement would serve no 
useful purpose. (Added by Ord. 265-06, File No. 
061206, App. 10/27/2006) 



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Supp. No. 2, October 2006 



CHAPTER 37: RESIDENTIAL RENT STABILIZATION AND ARBITRATION ORDINANCE 



Sec. 37.1. Title and Findings. 

Sec. 37.2. Definitions. 

Sec. 37.3. Rent Limitations. 

Sec. 37.4. Establishment; Appointment; 

Terms; Executive Director; 
Funding; Compensation. 

Sec. 37.5. Meetings of the Board. 

Sec. 37.6. Powers and Duties. 

Sec. 37.7. Certification of Rent Increases 

for Capital Improvements, 
Rehabilitation Work, Energy 
Conservation Improvements, 
and Renewable Energy 
Improvements. 

Sec. 37.8. Arbitration of Rental Increase 

Adjustments. 

Sec. 37. 8A. Expedited Hearing Procedures. 

Sec. 37. 8B. Expedited Hearing and Appeal 
Procedures for Capital 
Improvements Resulting from 
Seismic Work on Unreinforced 
Masonry Buildings Pursuant to 
Building Code Chapters 16B 
and 16C Where Landlords 
Performed the Work with a 
UMB Bond Loan. 

Sec. 37.8C. Temporary Moratorium on Rent 
Board Processing or Approval of 
Landlord Petitions for 
Certification and Passthrough of 
Non-Seismic Capital 
Improvement, Rehabilitation 
and Energy Conservation Costs 
to Tenants, During Pendency of 
the Superior Court Preliminary 
Injunction Sta5ring 
Implementation of November 
2000 Proposition H. 

Sec. 37.9. Evictions. 

Sec. 37. 9A. Tenant Rights in Certain 

Displacements Under Section 
37.9(a)(13). 



Sec. 


37.9B. 


Tenant Rights in Evictions 
Under Section 37.9(a)(8). 


Sec. 


37.9C. 


Tenants Rights to Relocation for 
No-Fault Evictions. 


Sec. 


37.10A. 


Misdemeanors, and Other 
Enforcement Provisions. 


Sec. 


37.11A. 


Civil Actions. 


Sec. 


37.12. 


Transitional Provisions. 


Sec. 


37.13. 


Keys. 


Sec. 


37.14A. 


Hearings and Remedies for 
Violation of Residential Hotel 
Visitor Policies. 


Sec. 


37.14B. 


Hearing, Residential Hotel Mail 
Receptacles. 


Sec. 


37.15. 


Severability. 



Editor's Note: 

This Chapter includes only Sections 37.3(a)(6) and 
37.3(b)(2) of Proposition H which was approved by the 
voters on November 7, 2000. On August 10, 2001 , the 
San Francisco Superior Court permanently enjoined 
the enforcement of Proposition H with the exception of 
Sections 37.3(a)(6) and 37.3(b)(2), which were not 
challenged. The text of Proposition H, which limits the 
types of costs on which a landlord may base a rent 
increase, can be found in Appendix 50 of this Code. 

SEC. 37.1. TITLE AND FINDINGS. 

(a) The Chapter shall be known as the Resi- 
dential Rent Stabilization and Arbitration Ordi- 
nance. 

(b) The Board of Supervisors hereby finds: 

(1) There is a shortage of decent, safe and 
sanitary housing in the City and County of San 
Francisco resulting in a critically low vacancy 
factor. 

(2) Tenants displaced as a result of their 
inability to pay increased rents must relocate 
but as a result of such housing shortage are 
unable to find decent, safe and sanitary housing 
at affordable rent levels. Aware of the difficulty 
in finding decent housing, some tenants attempt 



3655 



Supp. No. 4, January 2007 



Sec. 37.1. 



San Francisco - Administrative Code 



3656 



to pay requested rent increases, but as a conse- 
quence must expend less on other necessities of 
life. 

This situation has had a detrimental effect 
on substantial numbers of renters in the City 
and County, especially creating hardships on 
senior citizens, persons on fixed incomes and low 
and moderate income households. 

(3) The problem of rent increases reached 
crisis level in the Spring of 1979. At that time the 
Board of Supervisors conducted hearings and 
caused studies to be made on the feasibility and 
desirability of various measures designed to ad- 
dress the problems created by the housing short- 
age. 

(4) In April, 1979, pending development and 
adoption of measures designed to alleviate the 
City and County's housing crisis, the Board of 
Supervisors adopted Ordinance No. 181-79, pro- 
hibiting most rent increases on residential rental 
properties for 60 days. Ordinance No. 181-79 is 
scheduled to expire no later than June 30, 1979. 

(5) The provisions of Ordinance No. 181-79 
have successfully reduced the rate of rent in- 
creases in the City and County, along with the 
concomitant hardships and displacements. How- 
ever, a housing shortage still exists within the 
City and County of San Francisco and total 
deregulation of rents at this time would imme- 
diately lead to widespread exorbitant rent in- 
creases and recurrence of the crisis, problems 
and hardships which existed prior to the adop- 
tion of the moratorium measures. 

(6) This ordinance shall be in effect for 15 
months. During this time, a Citizens' Housing 
Task Force shall be created to conduct a further 
study of and make recommendations for, the 
problems of housing in San Francisco. In the 
interim, some immediate measures are needed 
to alleviate San Francisco's housing problems. 
This ordinance, therefore, creates a Residential 
Rent Stabilization and Arbitration Board in or- 
der to safeguard tenants from excessive rent 
increases and, at the same time, to assure land- 
lords fair and adequate rents consistent with 
Federal Anti-Inflation Guidelines. 



(c) The people of San Francisco hereby find 
and declare: 

(1) Present law provides that the annual 
allowable rent increase shall be 60 percent of the 
Consumer Price Index but in no event less than 
four percent of the tenant's base rent. 

(2) Rent increases of 60 percent of the Con- 
sumer Price Index are sufficient to assure land- 
lords fair and adequate rents consistent with 
Federal Anti-Inflation Guidelines. 

(3) Since 1984, 60 percent of the Consumer 
Price Index has been less than four percent per 
year, so landlords have been able to impose 
yearly rent increases above the rate of inflation 
since 1984. 

(4) Under the current four percent floor, 
landlords have received more than 60 percent of 
the Consumer Price Index with resulting hard- 
ship to tenants. 

(5) Therefore, in order to alleviate this hard- 
ship to tenants and to ensure that landlords 
receive fair and adequate rents consistent with 
Federal Anti-Inflation Guidelines, we hereby 
amend this ordinance to delete the current four 
percent floor on annual rent increases. (Added by 
Ord. 276-79, App. 6/12/79) 

SEC. 37.2. DEFINITIONS. 

(a) Base Rent. 

(1) That rent which is charged a tenant 
upon initial occupancy plus any rent increase 
allowable and imposed under this Chapter; pro- 
vided, however, that base rent shall not include 
increases imposed pursuant to Section 37.7, and 
base rent shall not include utility passthroughs 
or water revenue bond passthroughs or general 
obligation bond passthroughs pursuant to Sec- 
tions 37.2(q), 37.3(a)(5)(B), and 37.3(a)(6). Base 
rent for tenants of RAP rental units in areas 
designated on or after July 1, 1977, shall be that 
rent which was established pursuant to Section 
32.73-1 of the San Francisco Administrative Code. 
Rent increases attributable to the City 
Administrator's amortization of an RAP loan in 
an area designated on or after July 1, 1977, shall 
not be included in the base rent. 



Supp. No. 4, January 2007 



3657 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.2. 



(2) From and after the effective date of this 
ordinance, the base rent for tenants occup3dng 
rental units which have received certain tenant- 
based or project-based rental assistance shall be 
as follows: 

(A) With respect to tenant-based rental as- 
sistance: 

(i) For any tenant receiving tenant-based 
assistance as of the effective date of this ordi- 
nance (except where the rent payable by the 
tenant is a fixed percentage of the tenant's 
income, such as in the Section 8 certificate pro- 
gram and the rental subsidy program for the 
HOPWA program), and continuing to receive 
tenant-based rental assistance following the ef- 
fective date of this ordinance, the base rent for 
each unit occupied by such tenant shall be the 
rent payable for that unit under the Housing 
Assistance Payments contract, as amended, be- 
tween the San Francisco Housing Authority and 
the landlord (the "HAP contract") with respect to 
that unit immediately prior to the effective date 
of this ordinance (the "HAP" contract rent"). 

(ii) For any tenant receiving tenant-based 
rental assistance (except where the rent payable 
by the tenant is a fixed percentage of the tenant's 
income, such as in the Section 8 certificate pro- 
gram and the rental subsidy program for the 
HOPWA program), and commencing occupancy 
of a rental unit following the effective date of this 
ordinance, the base rent for each unit occupied 
by such a tenant shall be the HAP contract rent 
in effect as of the date the tenant commences 
occupancy of such unit. 

(iii) For any tenant whose tenant-based 
rental assistance terminates or expires, for what- 
ever reason, following the effective date of this 
ordinance, the base rent for each such unit 
following expiration or termination shall be the 
HAP contract rent in effect for that unit imme- 
diately prior to the expiration or termination of 
the tenant-based rental assistance. 

(B) For any tenant occupying a unit upon 
the expiration or termination, for whatever rea- 
son, of a project-based HAP contract under Sec- 
tion 8 of the United States Housing Act of 1937 
(42 use Section 1437f, as amended), the base 



rent for each such unit following expiration or 
termination shall be the "contract rent" in effect 
for that unit immediately prior to the expiration 
or termination of the project-based HAP con- 
tract. 

(C) For any tenant occupying a unit upon 
the prepayment or expiration of any mortgage 
insured by the United States Department of 
Housing and Urban Development ("HUD"), in- 
cluding but not limited to mortgages provided 
under Sections 221(d)(3), 221(d)(4) and 236 of 
the National Housing Act (12 USC Section 1715z- 
1), the base rent for each such unit shall be the 
"basic rental charge" (described in 12 USC 1715z- 
1(f), or successor legislation) in effect for that 
unit immediately prior to the prepayment of the 
mortgage, which charge excludes the "interest 
reduction payment" attributable to that unit 
prior to the mortgage prepayment or expiration. 

(b) Board. The Residential Rent Stabiliza- 
tion and Arbitration Board. 

(c) Capital Improvements. Those improve- 
ments which materially add to the value of the 
property, appreciably prolong its useful life, or 
adapt it to new uses, and which may be amor- 
tized over the useful life of the improvement of 
the building. 

(d) CPI. Consumer Price Index for all Ur- 
ban Consumers for the San Francisco-Oakland 
Metropolitan Area, U.S. Department of Labor. 

(e) Energy Conservation Improvements. 

Work performed pursuant to the requirements of 
Chapter 12 of the San Francisco Housing Code. 

(f) Administrative Law Judge. A person, 
designated by the Board, who arbitrates and 
mediates rental increase disputes, and performs 
other duties as required pursuant to this Chap- 
ter 37. 

(g) Housing Services. Services provided 
by the landlord connected with the use or occu- 
pancy of a rental unit including, but not limited 
to: repairs; replacement; maintenance; painting; 
light; heat; water; elevator service; laundry fa- 
cilities and privileges; janitor service; refuse re- 
moval; furnishings; telephone; parking; rights 
permitted the tenant by agreement, including 
the right to have a specific number of occupants, 



Supp. No. 4, January 2007 



Sec. 37.2. 



San Francisco - Administrative Code 



3658 



whether express or impUed, and whether or not 
the agreement prohibits subletting and/or assign- 
ment; and any other benefits, privileges or facili- 
ties. 

(h) Landlord. An owner, lessor, sublessor, 
who receives or is entitled to receive rent for the 
use and occupancy of any residential rental unit 
or portion thereof in the City and County of San 
Francisco, and the agent, representative or suc- 
cessor of any of the foregoing. 

(i) Member. A member of the Residential 
Rent Stabilization and Arbitration Board. 

(j) Over FMR Tenancy Program. A regu- 
lar certificate tenancy program whereby the base 
rent, together with a utility allowance in an 
amount determined by HUD, exceeds the fair 
market rent limitation for a particular unit size 
as determined by HUD. 

(k) Payment Standard. An amount deter- 
mined by the San Francisco Housing Authority 
that is used to determine the amount of assis- 
tance paid by the San Francisco Housing Author- 
ity on behalf of a tenant under the Section 8 
Voucher Program (24 CFR Part 887). 

(1) RAP. Residential Rehabilitation Loan Pro- 
gram (Chapter 32, San Francisco Administrative 
Code). 

(m) RAP Rental Units. Residential dwell- 
ing units subject to RAP loans pursuant to Chap- 
ter 32, San Francisco Administrative Code. 

(n) Real Estate Department. A city de- 
partment in the City and County of San Fran- 
cisco. 

(o) Rehabilitation Work. Any rehabilita- 
tion or repair work done by the landlord with 
regard to a rental unit, or to the common areas of 
the structure containing the rental unit, which 
work was done in order to be in compliance with 
State or local law, or was done to repair damage 
resulting from fire, earthquake or other casualty 
or natural disaster. 

(p) Rent. The consideration, including any 
bonus, benefits or gratuity, demanded or re- 
ceived by a landlord for or in connection with the 
use or occupancy of a rental unit, or the assign- 
ment of a lease for such a unit, including but not 



limited to monies demanded or paid for parking, 
furnishing, food service, housing services of any 
kind, or subletting. 

(q) Rent Increases. Any additional monies 
demanded or paid for rent as defined in item (p) 
above, or any reduction in housing services with- 
out a corresponding reduction in the monies 
demanded or paid for rent; provided, however, 
that: (1) where the landlord has been pajdng the 
tenant's utilities and the cost of those utilities 
increases, the landlord's passing through to the 
tenant of such increased costs pursuant to this 
Chapter does not constitute a rent increase; (2) 
where there has been a change in the landlord's 
property tax attributable to a general obligation 
bond approved by the voters between November 
1, 1996 and November 30, 1998, or after Novem- 
ber 14, 2002, the landlord's passing through to 
the tenant of such increased costs in accordance 
with this Chapter (see Section 37.3(a)(6)) does 
not constitute a rent increase; (3) where there 
has been a change in the landlord's property tax 
attributable to a San Francisco Unified School 
District or San Francisco Community College 
District general obligation bond approved by the 
voters after November 1, 2006, the landlord's 
passing through to the tenant of such increased 
costs in accordance with this Chapter (see Sec- 
tion 37.3(a)(6)) does not constitute a rent in- 
crease; and, (4) where water bill charges are 
attributable to water rate increases resulting 
from issuance of water revenue bonds authorized 
at the November 5, 2002 election, the landlord's 
passing through to the tenant of such increased 
costs in accordance with this Chapter (see Sec- 
tion 37.3(a)(5)(B)) does not constitute a rent 
increase. 

(r) Rental Units. All residential dwelling 
units in the City and County of San Francisco 
together with the land and appurtenant build- 
ings thereto, and all housing services, privileges, 
furnishings and facilities supplied in connection 
with the use or occupancy thereof, including 
garage and parking facilities. 

Garage facilities, parking facilities, drive- 
ways, storage spaces, laundry rooms, decks, pa- 
tios, or gardens on the same lot, or kitchen 



Supp. No. 4, January 2007 



3659 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.2. 



facilities or lobbies in single room occupancy 
(SRO) hotels, supplied in connection with the use 
or occupancy of a unit, may not be severed from 
the tenancy by the landlord without just cause as 
required by Section 37.9(a). Any severance, re- 
duction or removal permitted under this Section 
37.2(r) shall be offset by a corresponding reduc- 
tion in rent. Either a landlord or a tenant may 
file a petition with the Rent Board to determine 
the amount of the rent reduction. 

The term "rental units" shall not include: 

(1) Housing accommodations in hotels, mo- 
tels, inns, tourist houses, rooming and boarding 
houses, provided that at such time as an accom- 
modation has been occupied by a tenant for 32 
continuous days or more, such accommodation 
shall become a rental unit subject to the provi- 
sions of this Chapter; provided further, no land- 
lord shall bring an action to recover possession of 
such unit in order to avoid having the unit come 
within the provisions of this Chapter. An eviction 
for a purpose not permitted under Section 37.9(a) 
shall be deemed to be an action to recover pos- 
session in order to avoid having a unit come 
within the provisions of this Chapter; 

(2) Dwelling units in nonprofit cooperatives 
owned, occupied and controlled by a majority of 
the residents or dwelling units solely owned by a 
nonprofit public benefit corporation governed by 
a board of directors the majority of which are 
residents of the dwelling units and where it is 
required in the corporate by-laws that rent in- 
creases be approved by a majority of the resi- 
dents; 

(3) Housing accommodation in any hospi- 
tal, convent, monastery, extended care facility, 
asylum, residential care or adult day health care 
facility for the elderly which must be operated 
pursuant to a license issued by the California 
Department of Social Services, as required by 
California Health and Safety Chapters 3.2 and 
3.3; or in dormitories owned and operated by an 
institution of higher education, a high school, or 
an elementary school; 

(4) Except as provided in Subsections (A), 
(B) and (C), dwelling units whose rents are 
controlled or regulated by any government unit, 



agency or authorit}^, excepting those unsubsi- 
dized and/or unassisted units which are insured 
by the United States Department of Housing and 
Urban Development; provided, however, that units 
in unreinforced masonry buildings which have 
undergone seismic strengthening in accordance 
with Building Code Chapters 16B and 16C shall 
remain subject to the Rent Ordinances to the 
extent that the ordinance is not in conflict with 
the seismic strengthening bond program or with 
the program's loan agreements or with any regu- 
lations promulgated thereunder; 

(A) For purposes of Sections 37.2, 
37.3(a)(10)(A), 37.4, 37.5, 37.6, 37.9, 37.9A, 37.10A, 
37.11Aand 37.13, and the arbitration provisions 
of Sections 37.8 and 37. 8A applicable only to the 
provisions of Sections 37.3(a)(10)(A), the term 
"rental units" shall include units occupied by 
recipients of tenant-based rental assistance where 
the tenant-based rental assistance pro^p-am does 
not establish the tenant's share of base rent as a 
fixed percentage of a tenant's income, such as in 
the Section 8 voucher program and the "Over- 
FMR Tenancy" program defined in 24 CFR Sec- 
tion 982.4; 

(B) For purposes of Sections 37.2, 
37.3(a)(10)(B), 37.4, 37.5, 37.6, 37.9, 37.9A, 37.10A, 
37.11A and 37.13, the term "rental units" shall 
include units occupied by recipients of tenant- 
based rental assistance where the rent payable 
by the tenant under the tenant-based rental 
assistance program is a fixed percentage of the 
tenant's income; such as in the Section 8 certifi- 
cate program, and the rental subsidy program for 
the Housing Opportunities for Persons with Aids 
("HOPWA") program (42 U.S.C. Section 12901 et 
seq., as amended); 

(C) The term "rental units" shall include 
units in a building for which tax credits are 
reserved or obtained pursuant to the federal low 
income housing tax credit program (LIHTC, Sec- 
tion 42 of the Internal Revenue Code, 26 U.S.C. 
Section 42), that satisfy the following criteria: 

(i) Where a tenant's occupancy of the unit 
began before the applicable LIHTC regulatory 
agreement was recorded; and, 



Supp. No. 9, June 2007 



Sec. 37.2. 



San Francisco - Administrative Code 



3660 



(ii) Where the rent is not controlled or regu- 
lated by any use restrictions imposed by the City 
and County of San Francisco, the San Francisco 
Redevelopment Agency, the State of California 
Office of Housing and Community Development, 
or the United States Department of Housing and 
Urban Development. 

Nothing in this Section 37.2(r)(4)(C) pre- 
cludes a landlord from seeking an exemption on 
the basis of substantial rehabilitation under Sec- 
tion 37.2(r)(6). 

This Section 37.2(r)(4)(C) definition of "rental 
unit" shall apply to any unit where the qualify- 
ing tenant (see Section 37.2(r)(4)(C)(i)) is in 
possession of the unit on or after the effective 
date of this ordinance (Ord. No. 281-06), includ- 
ing but not limited to any unit where the tenant 
has been served with a notice to quit but has not 
vacated the unit and there is no final judgment 
against the tenant for possession of the unit as of 
the effective date of this ordinance (Ord. No. 
281-06). 

(5) Rental units located in a structure for 
which a certificate of occupancy was first issued 
after the effective date of this ordinance; (A) 
except as provided for certain categories of units 
and dwellings by Section 37.3(d) and Section 
37.9A(b) of this Chapter, and (B) except as pro- 
vided in a development agreement entered into 
by the City under San Francisco Administrative 
Code Chapter 56. 

(6) Dwelling units in a building which has 
undergone substantial rehabilitation after the 
effective date of this ordinance; provided, how- 
ever, that RAP rental units are not subject to this 
exemption. 

(7) Dwellings or units otherwise subject to 
this Chapter 37, to the extent such dwellings or 
units are partially or wholly exempted from rent 
increase limitations by the Costa-Hawkins Rental 
Housing Act (California Civil Code Sections 
1954.50, et seq.) and/or San Francisco Adminis- 
trative Code Section 37.3(d). 

(s) Substantial Rehabilitation. The reno- 
vation, alteration or remodeling of residential 
units of 50 or more years of age which have been 
condemned or which do not qualify for certifi- 



cates of occupancy or which require substantial 
renovation in order to conform the building to 
contemporary standards for decent, safe and 
sanitary housing. Substantial rehabilitation may 
vary in degree from gutting and extensive recon- 
struction to extensive improvements that cure 
substantial deferred maintenance. Cosmetic im- 
provements alone such as painting, decorating 
and minor repairs, or other work which can be 
performed safely without having the unit va- 
cated do not qualify as substantial rehabilita- 
tion. 

(t) Tenant. A person entitled by written or 
oral agreement, sub-tenancy approved by the 
landlord, or by sufferance, to occupy a residential 
dwelling unit to the exclusion of others. 

(u) Tenant-Based Rental Assistance. 
Rental assistance provided directly to a tenant 
or directly to a landlord on behalf of a particular 
tenant, which includes but shall not be limited to 
certificates and vouchers issued pursuant to Sec- 
tion 8 of the United States Housing Act of 1937, 
as amended (42 U.S.C. Section 1437f) and the 
HOPWA program. 

(v) Utilities. The term "utilities" shall refer 
to gas and electricity exclusively. (Amended by 
Ord. 193-86, App. 5/30/86; Ord. 221-92, App. 
7/14/92; Ord. 233-93, App. 7/22/93; Proposition I, 
11/8/94; Ord. 446-94, App. 12/30/94; Ord. 179-98, 
App. 5/29/98; Ord. 250-98, App. 7/31/98; Ord. 
237-99, File No. 990168, App. 8/30/99; Ord. 347- 
99, File No. 992197, App. 12/30/99; Ord. 116-00, 
File No. 991315, App. 6/2/2000; Ord. 2-03, File 
No. 020716, App, 1/21/2003; Ord. 107-03, File 
No. 030689, App. 5/23/2003; Ord. 178-06, File 
No. 052025, App.; Ord. 252-06, File No. 061183, 
App. 10/11/2006; Ord. 281-06, File No. 061376, 
App. 11/20/2006; Ord. 92-07, File No. 061217, 
App. 4/27/2007) 

SEC. 37.3. RENT LIMITATIONS. 

(a) Rent Increase Limitations for Ten- 
ants in Occupancy. Landlords may impose 
rent increases upon tenants in occupancy only as 
provided below and as provided by Subsection 
37.3(d): 

(1) Annual Rent Increase. On March 1st 
of each year, the Board shall publish the increase 
in the CPI for the preceding 12 months, as made 



Supp. No. 9, June 2007 



3660.1 Residential Rent Stabilization and Arbitration Ordinance Sec. 37.3. 



available by the U.S. Department of Labor, A 
landlord may impose annually a rent increase 
which does not exceed a tenant's base rent by 
more than 60 percent of said published increase. 
In no event,, however, shall the allowable annual 
increase be greater than seven percent. 

(2) Banking. A landlord who refrains from 
imposing an annual rent increase or any portion 
thereof may accumulate said increase and im- 
pose that amount on the tenant's subsequent 
rent increase anniversary dates. A landlord who, 
between April 1, 1982, and February 29, 1984, 
has banked an annual seven percent rent in- 
crease (or rent increases) or any portion thereof 
may impose the accumulated increase on the 
tenant's subsequent rent increase anniversary 
dates. 

(3) Capital Improvements, Rehabilita- 
tion, and Energy Conservation Improve- 
ments, and Renewable Energy Improve- 
ments. A landlord may impose rent increases 
based upon the cost of capital improvements, 
rehabilitation, energy conservation improve- 
ments, or renewable energy improvements, pro- 
vided that such costs are certified pursuant to 
Sections 37.7 and 37. 8B below; provided further 
that where a landlord has performed seismic 
strengthening in accordance with Building Code 
Chapters 16B and 16C, no increase for capital 
improvements (including but not limited to seis- 
mic strengthening) shall exceed, in any 12 month 
period, 10 percent of the tenant's base rent, 
subject to rules adopted by the Board to prevent 
landlord hardship and to permit landlords to 
continue to maintain their buildings in a decent, 
safe and sanitary condition. A landlord may 
accumulate any certified increase which exceeds 
this amount and impose the increase in subse- 



Supp. No. 9, June 2007 



[INTENTIONALLY LEFT BLANK] 



Supp. No. 9, June 2007 



3661 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.3. 



quent years, subject to the 10 percent limitation. 
Nothing in this subsection shall be construed to 
supersede £iny Board rules or regulations with 
respect to limitations on increases based upon 
capital improvements whether performed sepa- 
rately or in conjunction with seismic strengthen- 
ing improvements pursuant to Building Code 
Chapters 16B and 16C. 

(4) Utilities. A landlord may impose in- 
creases based upon the cost of utilities as pro- 
vided in Section 37.2(q) above. 

(5) Water: Charges Related to Excess Wa- 
ter Use, and 50% Passthrough of Water Bill 
Charges Attributable to Water Rate Increases 
Resulting From Issuance of Water System Im- 
provement Revenue Bonds Authorized at the 
November 2002 Election. 

(A) Charges Related to Excess Water 

Use. A landlord may impose increases not to 
exceed 50 percent of the excess use charges 
(penalties) levied by the San Francisco Water 
Department on a building for use of water in 
excess of Water Department allocations under 
the following conditions: 

(i) The landlord provides tenants with writ- 
ten certification that the following have been 
installed in all units: (1) permanently installed 
retrofit devices designed to reduce the amount of 
water used per flush or low-flow toilets (1.6 
gallons per flush); (2) low-flow showerheads which 
allow a flow of no more than 2.5 gallons per 
minute; and (3) faucet aerators (where installa- 
tion on current faucets is physically feasible); 
and 

(ii) The landlord provides the tenants with 
written certification that no known plumbing 
leaks currently exist in the building and that any 
leaks reported by tenants in the future will be 
promptly repaired; and 

(iii) The landlord provides the tenants with 
a copy of the water bill for the period in which 
the penalty was charged. Only penalties billed 
for a service period which begins after the effec- 
tive date of the ordinance [April 20, 1991] may be 
passed through to tenants. Where penalties re- 
sult from an allocation which does not reflect 
documented changes in occupancy which oc- 



curred after March 1, 1991, a landlord must, if 
requested in writing by a tenant, make a good- 
faith effort to appeal the allotment. Increases 
based upon penalties shall be prorated on a 
per-room basis provided that the tenancy existed 
during the time the penalty charges accrued. 
Such charges shall not become part of a tenant's 
base rent. Where a penalty in any given billing 
period reflects a 25 percent or more increase in 
consumption over the prior billing period, and 
where that increase does not appear to result 
from increased occupancy or any other known 
use, a landlord may not impose any increase 
based upon such penalty unless inspection by a 
licensed plumber or Water Department inspector 
fails to reveal a plumbing or other leak. If the 
inspection does reveal a leak, no increase based 
upon penalties may be imposed at anj/^ time for 
the period of the unrepaired leak. 

(B) Fifty Percent (50%) Passthrough of 
Water Bill Charges Attributable to Water 
Increases Resulting From Issuance of Wa- 
ter System Improvement Revenue Bonds 
Authorized at the November 2002 Election. 
A landlord may pass through fifty percent (50%) 
of the water bill charges attributable to water 
rate increases resulting from issuance of Water 
System Improvement Revenue Bonds authorized 
at the November 2002 election (Proposition A), to 
any unit that is in compliance with any appli- 
cable laws requiring water conservation devices. 
The landlord is not required to file a petition 
with the Board for approval of such a cost 
passthrough. Such cost passthroughs are subject 
to the following: 

(i) Affected tenants shall be given notice of 
any such passthrough as provided by applicable 
notice of rent increase provisions of this Chapter 
37, including but not limited to Section 37.3(b)(3). 

(ii) A tenant may file a hardship application 
with the Board, and be granted relief from all or 
part of such a cost passthrough. 

(iii) If a tenant's hardship application is 
granted, the tenant's landlord may utilize any 
available Public Utilities Commission low-in- 
come rate discount program or similar program 
for water bill reduction, based on that tenant's 
hardship status. 



Supp. No. 2, October 2006 



Sec. 37.3. 



San Francisco - Administrative Code 



3662 



(iv) A landlord shall not impose a 
passthrough pursuant to Section 37.3(a)(5)(B) if 
the landlord has filed for or received Board 
approval for a rent increase under Section 
37.8(e)(4) for increased operating and mainte- 
nance expenses in which the same increase in 
water bill charges attributable to water rate 
increases resulting from issuance of any water 
revenue bonds authorized at the November 5, 
2002 election was included in the comparison 
year cost totals. 

(v) Where a tenant alleges that a landlord 
has imposed a water revenue bond passthrough 
that is not in compliance with Section 37.3(a)(5)(B), 
the tenant may petition for a hearing under the 
procedures provided by Section 37.8. In such a 
hearing the landlord shall have the burden of 
proving the accuracy of the calculation that is 
the basis for the increase. Any tenant petition 
challenging such a passthrough must be filed 
within one year of the effective date of the 
passthrough. 

(vi) A tenant who has received a notice of 
passthrough or a passthrough under this Section 
37.3(a)(5)(B) shall be entitled to receive a copy of 
the applicable water bill from the landlord upon 
request. 

(vii) The amount of permissible passthrough 
per unit under this Section 37.3(a)(5)(B) shall be 
determined as follows: 

(1) The San Francisco Public Utilities Com- 
mission will determine the charge per unit of 
water, if any, that is attributable to water rate 
increases resulting from issuance of water sys- 
tem improvement revenue bonds authorized at 
the November 5, 2002 election. 

(2) The charge identified in Section 
37.3(a)(5)(B)(vii)(l) shall be multiphed by the 
total units of water used by each customer, for 
each water bill. The result is the total dollar 
amount of the water bill that is attributable to 
water rate increases resulting from issuance of 
water system improvement revenue bonds au- 
thorized at the November 5, 2002 election. That 
charge shall be a separate line item on each 
customer's water bill. 



(3) The dollar amount calculated under Sec- 
tion 37.3(a)(5)(B)(vii)(2) shall be divided by two 
(since a 50% passthrough is permitted), and then 
divided by the total number of units covered by 
the water bill, including commercial units. The 
resulting dollar figure shall be divided by the 
number of months covered by the water bill cycle 
(most are two-month bill cycles), to determine 
the amount of that water bill that may be passed 
through to each residential unit for each month 
covered by that bill. 

(4) These passthroughs may be imposed on 
a monthly basis. These passthroughs shall not 
become part of a tenant's base rent. The amount 
of each passthrough may vary from month to 
month, depending on the amount calculated un- 
der Sections 37.3(a)(5)(B)(vii)(l) through (3). 

(viii) The Board may amend its rules and 
regulations as necessary to implement this Sec- 
tion 37.3(a)(5)(B). 

(6) Property Tax. A landlord may impose 
increases based upon a 100% passthrough of the 
change in the landlord's property tax resulting 
from the repajnnent of general obligation bonds 
of the City and County of San Francisco ap- 
proved by the voters between November 1, 1996, 
and November 30, 1998 as provided in Section 
37.2(q) above. 

A landlord may impose increases based upon 
a 50% passthrough of the change in the landlord's 
property tax resulting from the repajnnent of 
San Francisco Unified School District or San 
Francisco Community College District general 
obligation bonds approved by the voters after 
November 1, 2006, as provided in Section 37.2(q) 
above. 

The amount of such increases shall be deter- 
mined for each tax year as follows: 

(A) For general obligation bonds of the City 
and County of San Francisco approved by the 
voters between November 1, 1996 and November 
30, 1998: 

(i) The Controller and the Board of Super- 
visors will determine the percentage of the prop- 
erty tax rate, if any, in each tax year attributable 
to general obligation bonds approved by the 



Supp. No. 2, October 2006 



3663 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.3. 



voters between November 1, 1996, and Novem- 
ber 30, 1998, and repayable within such tax year. 

(ii) This percentage shall be multiplied by 
the total amount of the net taxable value for the 
applicable tax year. The result is the dollar 
amount of property taxes for that tax year for a 
particular property attributable to the repay- 
ment of general obligation bonds approved by 
the voters between November 1, 1996, and No- 
vember 30, 1998. 

(iii) The dollar amount calculated under 
Subsection (ii) shall be divided by the total 
number of all units in each property, including 
commercial units. That figure shall be divided by 
12 months, to determine the monthly per unit 
costs for that tax year of the repayment of 
general obligation bonds approved by the voters 
between November 1, 1996, and November 30, 
1998. 

(B) For general obligation bonds of the City 
and County of San Francisco approved by the 
voters after November 14, 2002 where any rent 
increase has been disclosed and approved by the 
voters: 

(i) The Controller and the Board of Super- 
visors will determine the percentage of the prop- 
erty tax rate, if any, in each tax year attributable 
to general obligation bonds approved by the 
voters after November 14, 2002 and repayable 
within such tax year. 

(ii) This percentage shall be multiplied by 
the total amount of the net taxable value for the 
applicable tax year. The result is the dollar 
amount of property taxes for that tax year for a 
particular property attributable to the repay- 
ment of general obligation bonds approved by 
the voters after November 14, 2002. 

(iii) The dollar amount calculated under 
Subsection (ii) shall be divided by two, and then 
by the total number of all units in each property, 
including commercial units. That figure shall be 
divided by 12 months, to determine the monthly 
per unit costs for that tax year of the repajonent 
of general obligation bonds approved by the 
voters after November 14, 2002. 



(C) For general obligation bonds of the San 
Francisco Unified School District or San Fran- 
cisco Community College District approved by 
the voters after November 1, 2006: 

(i) The Controller and the Board of Super- 
visors will determine the percentage of the prop- 
erty tax rate, if any, in each tax year attributable 
to San Francisco Unified School District or San 
Francisco Community College District general 
obligation bonds approved by the voters after 
November 1, 2006 and repayable within such tax 
year. 

(ii) This percentage shall be multiplied by 
the total amount of the net taxable value for the 
applicable tax year. The result is the dollar 
amount of property taxes for that tax year for a 
particular property attributable to the repay- 
ment of San Francisco Unified School District or 
San Francisco Community College District gen- 
eral obligation bonds approved by the voters 
after November 1, 2006. 

(iii) The dollar amount calculated under 
Subsection (ii) shall be divided by two, and then 
by the total number of all units in each property, 
including commercial units. That figure shall be 
divided by 12 months, to determine the monthly 
per unit costs for that tax year of the repayment 
of San Francisco Unified School District or San 
Francisco Community College District general 
obligation bonds approved by the voters after 
November 1, 2006. 

(D) Landlords may pass through to each 
unit in a particular property the dollar amount 
calculated under these Subsections 37.3(a)(6)(A) 
and (B) and (C). These passthroughs may be 
imposed only on the anniversary date of each 
tenant's occupancy of the property. These 
passthroughs shall not become a part of a tenant's 
base rent. The amount of each annual passthrough 
imposed pursuant to this Subsection (6) may 
vary from year-to-year, depending on the amount 
calculated under Subsections (A) and (B) and 
(C). Each annual passthrough shall apply only 
for the 12 month period after it is imposed. A 
landlord may impose the passthroughs described 
in this Subsection (6) for a particular tax year 
only with respect to those tenants who were 



Supp. No. 2, October 2006 



Sec. 37.3. 



San Francisco - Administrative Code 



3664 



residents of a particular property on November 
1st of the applicable tax year. A landlord shall 
not impose a passthrough pursuant to this Sub- 
section (6) if the landlord has filed for or received 
Board approval for a rent increase under Section 
37, 8(e)(4) for increased operating and mainte- 
nance expenses in which the same increase in 
property taxes due to the repa5niient of general 
obligation bonds was included in the comparison 
year cost totals. 

(E) The Board will have available a form 
which explains how to calculate the passthrough. 

(F) Landlords must provide to tenants, on 
or before the date that notice is served on the 
tenant of a passthrough permitted under this 
Subsection (6), a copy of the completed form 
described in Subsection (E). This completed form 
shall be provided in addition to the Notice of 
Rent Increase required under Section 37.3(b)(5). 
Where a tenant alleges that a landlord has 
imposed a charge which exceeds the limitations 
set forth in this Subsection (6), the tenant may 
petition for a hearing under the procedures pro- 
vided by Section 37.8. In such a hearing, the 
landlord shall have the burden of proving the 
accuracy of the calculation that is the basis for 
the increase. Any tenant petitions challenging 
such a passthrough must be filed within one year 
of the effective date of the passthrough. 

(G) The Board may amend its rules and 
regulations as necessary to implement this Sub- 
section (6). 

(7) RAP Loans. A landlord may impose 
rent increases attributable to the City 
Administrator's amortization of the RAP loan in 
an area designated on or after July 1, 1977, 
pursuant to Chapter 32 of the San Francisco 
Administrative Code. 

(8) Additional Increases. A landlord who 
seeks to impose any rent increase which exceeds 
those permitted above shall petition for a rental 
arbitration hearing pursuant to Section 37.8 of 
this Chapter. 

(9) A landlord may impose a rent increase 
to recover costs incurred for the remediation of 
lead hazards, as defined in San Francisco Health 
Code Article 11 or 26. Such increases may be 



based on changes in operating and maintenance 
expenses or for capital improvement expendi- 
tures as long as the costs which are the basis of 
the rent increase are a substantial portion of the 
work which abates or remediates a lead hazard, 
as defined in San Francisco Health Code Article 
11 or 26, and provided further that such costs are 
approved for operating and maintenance ex- 
pense increases pursuant to Section 37.8(e)(4)(A) 
and certified as capital improvements pursuant 
to Section 37.7 below. 

When rent increases are authorized by this 
Subsection 37.3(a)(9), the total rent increase for 
both operating and maintenance expenses and 
capital improvements shall not exceed 10 per- 
cent in any 12 month period. If allowable rent 
increases due to the costs of lead remediation 
and abatement work exceed 10 percent in any 12 
month period, an Administrative Law Judge 
shall apply a portion of such excess to approved 
operating and maintenance expenses for lead 
remediation work, and the balance, if any, to 
certified capital improvements, provided, how- 
ever, that such increase shall not exceed 10 
percent. A landlord may accumulate any ap- 
proved or certified increase which exceeds this 
amount, subject to the 10 percent limit. 

(10) With respect to units occupied by re- 
cipients of tenant-based rental assistance: 

(A) If the tenant's share of the base rent is 
not calculated as a fixed percentage of the tenant's 
income, such as in the Section 8 voucher pro- 
gram and the Over-FMR Tenancy Program, then: 

(i) If the base rent is equal to or greater 
than the payment standard, the rent increase 
limitations in Sections 37.3(a)(1) and (2) shall 
apply to the entire base rent, and the arbitration 
procedures for those increases set forth in Sec- 
tion 37.8 and 37.8A shall apply 

(ii) If the base rent is less than the payment 
standard, the rent increase limitations of this 
Chapter shall not apply; provided, however, that 
any rent increase which would result in the base 
rent being equal to or greater than the payment 
standard shall not result in a new base rent that 
exceeds the pajmient standard plus the increase 
allowable under Section 37.3(a)(1). 



Supp. No. 2, October 2006 



3665 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.3. 



(B) If the tenant's share of the base rent is 
calculated as a fixed percentage of the tenant's 
income, such as in the Section 8 certificate pro- 
gram and the rental subsidy program for the 
HOPWA program, the rent increase limitations 
in Section 37.3(a)(1) and (2) shall not apply. In 
such circumstances, adjustments in rent shall be 
made solely according to the requirements of the 
tenant-based rental assistance program. 

(b) Notice of Rent Increase for Tenants 
in Occupancy. On or before the date upon 
which a landlord gives a tenant legal notice of a 
rent increase, the landlord shall inform the ten- 
ant, in writing, of the following: 

(1) Which portion of the rent increase re- 
flects the annual increase, and/or a banked 
amount, if any; 

(2) Which portion of the rent increase re- 
flects costs for increased operating and mainte- 
nance expenses, rents for comparable units, and/or 
capital improvements, rehabilitation, energy con- 
servation measures improvements, or renewable 
energy improvements certified pursuant to Sec- 
tion 37.7. Any rent increase certified due to 
increases in operating and maintenance costs 
shall not exceed seven percent; 

(3) Which portion of the rent increase re- 
flects the passthrough of charges for: gas and 
electricity; or the passthrough of increased water 
bill charges attributable to water rate increases 
resulting from issuance of water revenue bonds 
authorized at the November 2002 election as 
provided by Section 37.3(a)(5)(B), which charges 
and calculations of charges shall be explained in 
writing on a form provided by the Board; or the 
passthrough of general obligation bond measure 
costs as provided by Section 37.3(a)(6), which 
charges shall be explained in writing on a form 
provided by the Board as described in Section 
37.3(a)(6)(E); 

(4) Whiich portion of the rent increase re- 
flects the amortization of the RAP loan, as de- 
scribed in Section 37.3(a)(7) above. 

(5) Nonconforming Rent Increases. Any 

rent increase which does not conform with the 
provisions of this Section shall be null and void. 



(6) With respect to rental units occupied by 
recipients of tenant-based rental assistance, the 
notice requirements of this Subsection (b) shall 
be required in addition to any notice required as 
part of the tenant-based rental assistance pro- 
gram. 

(c) Initial Rent Limitation for Sub- 
tenants. A tenant who subleases his or her 
rental unit may charge no more rent upon initial 
occupancy of the subtenant or subtenants than 
that rent which the tenant is currently paying to 
the landlord. 

(d) Costa-Hawkins Rental Housing Act 
(Civil Code Sections 1954.50. et seq.) Consis- 
tent with the Costa-Hawkins Rental Housing 
Act (Civil Code Sections 1954.50. et seq.) and 
regardless of whether otherwise provided under 
Chapter 37: 

(1) Property Owner Rights to E^stablish 
Initial and All Subsequent Rental Rates for 
Separately Alienable Parcels. 

(A) An owner or residential real property 
may establish the initial and all subsequent 
rental rates for a dwelling or a unit which is 
alienable separate from the title to any other 
dwelling unit or is a subdivided interest in a 
subdivision as specified in subdivision (b), (d), or 
(f) of Section 11004.5 of the California Business 
and Professions Code. The owner's right to es- 
tablish subsequent rental rates under this para- 
graph shall not apply to a dwelling or unit where 
the preceding tenancy has been terminated by 
the owner by notice pursuant to California Civil 
Code Section 1946 or has been terminated upon 
a change in the terms of the tenancy noticed 
pursuant to California Civil Code Section 827; in 
such instances, the rent increase limitation pro- 
visions of Chapter 37 shall continue to apply for 
the duration of the new tenancy in that dwelling 
or unit. 

(B) Where the initial or subsequent rental 
rates of a Subsection 37.3(d)(1)(A) dwelling or 
unit were controlled by the provisions of Chapter 
37 on January 1, 1995, the following shall apply: 

(i) A tenancy that was in effect on December 
31, 1995, remains subject to the rent control 
provisions of this Chapter 37, and the owner may 
not otherwise establish the subsequent rental 
rates for that tenancy. 



Supp. No. 2, October 2006 



Sec. 37.3. 



San Francisco - Administrative Code 



3666 



(ii) On or after January 1, 1999, an owner 
may establish the initial and all subsequent 
rental rates for any tenancy created on or after 
January 1, 1996. 

(C) An owner's right to establish subse- 
quent rental rates under Subsection 37.3(d)(1) 
shall not apply to a dwelling or unit which 
contains serious health, safety, fire or building 
code violations, excluding those caused by disas- 
ters, for which a citation has been issued by the 
appropriate governmental agency and which has 
remained unabated for six months or longer 
preceding the vacancy. 

(2) Conditions for Establishing the Ini- 
tial Rental Rate Upon Sublet or Assign- 
ment. Except as identified in this Subsection 
37.3(d)(2), nothing in this Subsection or any 
other provision of law of the City and County of 
San Francisco shall be construed to preclude 
express establishment in a lease or rental agree- 
ment of the rental rates to be applicable in the 
event the rental unit subject thereto is sublet, 
and nothing in this Subsection shall be con- 
strued to impair the obligations of contracts 
entered into prior to January 1, 1996, subject to 
the following: 

(A) Where the original occupant or occu- 
pants who took possession of the dwelling or unit 
pursuant to the rental agreement with the owner 
no longer permanently reside there, an owner 
may increase the rent by any amount allowed by 
this Subsection to a lawful sublessee or assignee 
who did not reside at the dwelling or unit prior to 
January 1, 1996. However, such a rent increase 
shall not be permitted while: 

(i) The dwelling or unit has been cited in an 
inspection report by the appropriate governmen- 
tal agency as containing serious health, safety, 
fire, or building code violations, as defined by 
Section 17920.3 of the California Health and 
Safety Code, excluding any violation caused by a 
disaster; and, 

(ii) The citation was issued at least 60 days 
prior to the date of the vacancy: and, 

(iii) The cited violation had not been abated 
when the prior tenant vacated and had remained 
unabated for 60 days or for a longer period of 



time. However, the 60-day time period may be 
extended by the appropriate governmental agency 
that issued the citation. 

(B) This Subsection 37.3(d)(2) shall not ap- 
ply to partial changes in occupancy of a dwelling 
or unit where one or more of the occupants of the 
premises, pursuant to the agreement with the 
owner provided for above (37.3(d)(2)), remains 
an occupant in lawful possession of the dwellings 
or unit, or where a lawful sublessee or assignee 
who resided at the dwelling or unit prior to 
January 1, 1996, remains in possession of the 
dwelling or unit. Nothing contained in this Sub- 
section 37.3(d)(2) shall be construed to enlarge or 
diminish an owner's right to withhold consent to 
a sublease or assignment. 

(C) Acceptance of rent by the owner shall 
not operate as a waiver or otherwise prevent 
enforcement of a covenant prohibiting sublease 
or assignment or as a waiver of an owner's rights 
to establish the initial rental rate unless the 
owner has received written notice from the ten- 
ant that is party to the agreement and thereafter 
accepted rent. 

(3 ) Termination or Nonrenewal of a Con- 
tract or Recorded Agreement with a Gov- 
ernment Agency Limiting Rent. An owner 
who terminates or fails to renew a contract or 
recorded agreement with a governmental agency 
that provides for a rent limitation to a qualified 
tenant, shall be subject to the following: 

(A) The tenant(s) who were beneficiaries of 
the contract or recorded agreement shall be 
given at least 90 days' written notice of the 
effective date of the termination and shall not be 
obligated to pay more than the tenant's portion 
of the rent, as calculated under that contract or 
recorded agreement, for 90 days following re- 
ceipt of the notice of termination or nonrenewal. 

(B) The owner shall not be eligible to set an 
initial rent for three years following the date of 
the termination or nonrenewal of the contract or 
agreement. 

(C) The rental rate for any new tenancy 
established during the three-year period in that 
vacated dwelling or unit shall be at the same 
rate as the rent under the terminated or nonre- 



Supp. No. 2, October 2006 



3667 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.4. 



newed contract or recorded agreement, plus any 
increases authorized under this Chapter 37 after 
the date of termination/non renewal. 

(D) The provisions of Subsections 
37.3(d)(3)(B) and (C) shall not apply to any new 
tenancy of 12 months or more duration estab- 
lished after January 1, 2000, pursuant to the 
owner's contract or recorded agreement with a 
governmental agency that provides for a rent 
limitation to a qualified tenant unless the prior 
vacancy in that dwelling or unit was pursuant to 
a nonrenewed or canceled contract or recorded 
agreement with a governmental agency that 
provides for a rent limitation to a qualified 
tenant. 

(4) Subsection 37.3(d) does not affect the 
authority of the City and County of San Fran- 
cisco to regulate or monitor the basis or grounds 
for eviction. 

(5) This Subsection 37.3(d) is intended to be 
and shall be construed to be consistent with the 
Costa-Hawkins Rental Housing Act (Civil Code 
Sections 1954.50. et seq.). 

(e) Effect of Deferred Maintenance on 
Passthroughs for Lead Remediation Tech- 
niques. 

(1) When lead hazards are remediated or 
abated pursuant to San Francisco Health Code 
Articles 11 or 26, are violations of State or local 
housing health and safety laws, there shall be a 
rebuttable presumption that the lead hazards 
are caused or created by deferred maintenance 
as defined herein of the current or previous 
landlord. If the landlord fails to rebut the pre- 
sumption, the costs of such work shall not be 
passed through to tenants as either a capital 
improvement or an operating and maintenance 
expense. If the landlord rebuts the presumption, 
he or she shall be entitled to a rent increase if 
otherwise justified by the standards set forth in 
this Chapter. 

(2) For purposes of the evaluation of peti- 
tions for rent increases for lead remediation 
work, maintenance is deferred if a reasonable 
landlord under the circumstances would have 
performed, on a regular basis, the maintenance 
work required to keep the premises from being in 



violation of housing safety and habitability stan- 
dards set forth in California Civil Code Section 
1941 and the San Francisco Municipal Code. In 
order to prevail on a deferred maintenance de- 
fense, a tenant must show that the level of repair 
or remediation currently required would have 
been lessened had maintenance been performed 
in a more timely manner. (Added by Ord. 20-84, 
App. 1/19/84; amended by Ord. 338-87, App. 
8/14/87; Ord. 102-91, App. 3/21/91; Ord. 127-91, 
App. 4/2/91; Ord. 221-92, App. 7/14/92; Proposi- 
tion H, 11/3/92; Ord. 405-96, App. 10/21/96; Ord. 
179-98, App. 5/29/98; Ord. 250-98, App. 7/31/98; 
Ord. 347-99, File No. 992197, App. 12/30/99; Ord. 
116-00, File No. 991315, App. 6/2/2000; Proposi- 
tion H, 12/2/2000; Ord. 2-03, File No. 020716, 
App, 1/21/2003; Ord. 107-03, File No. 030689, 
App. 5/23/2003; Ord. 99-04, File No. 031992, 
App. 6/4/2004; Ord. 252-06, File No. 061183, App. 
10/11/2006) 

SEC. 37.4. ESTABLISHMENT; 
APPOINTMENT; TERMS; EXECUTIVE 
DIRECTOR; FUNDING; COMPENSATION. 

(a) There is hereby established a board to 
be known as the San Francisco Residential Rent 
Stabilization and Arbitration Board (hereinafter 
called "Board"), consisting of five members. Regu- 
lar members, each of whom shall have a specific 
alternate having the same qualifications as the 
regular member, shall serve at the pleasure of 
the Mayor. All regular members and alternate 
members shall be appointed by the Mayor. 

(b) The Board shall consist of two landlords, 
two tenants, and one person who is neither a 
landlord nor a tenant and who owns no residen- 
tial rental property; and an alternate for each 
specific member. All members shall be residents 
of the City and County of San Francisco. If one of 
the two regular landlord members is unavailable 
to vote, that regular member's specific alternate 
shall be seated and vote, and if that regular 
member's specific alternate is also unavailable to 
vote, the other landlord alternate shall (if avail- 
able) be seated and vote as a substitute alter- 
nate. If one of the two regular tenant members is 
unavailable to vote, that regular member's spe- 
cific alternate shall be seated and vote, and if 



Supp. No. 2, October 2006 



Sec. 37.4. 



San Francisco - Administrative Code 



3668 



that regular member's specific alternate is also 
unavailable to vote, the other tenant alternate 
shall (if available) be seated and vote as a 
substitute alternate. 

(c) In accordance with applicable State law, 
all members shall disclose all present holdings 
and interests in real property, including inter- 
ests in corporations, trusts or other entities with 
real property holdings. 

(d) All members shall be appointed by the 
Mayor to serve 48-month terms. All vacancies 
occurring during a term shall be filled for the 
unexpired term. 

(e) The Board shall elect a Chairman and 
Vice-Chairman from among its regular mem- 
bers. 

(f) The position of Executive Director shall 
be established pursuant to and subject to Char- 
ter Sections 3.500 and 8.200. The person occupy- 
ing the position of Executive Director shall be 
appointed by the Chairman of the Board with 
the approval of a majority of the members. All 
staff personnel shall be under the immediate 
direction and supervision of the Executive Direc- 
tor. 

(g) Pursuant to the budgetary and fiscal 
pro-visions of the Charter, the Board of Supervi- 
sors shall provide funds to pay for staff person- 
nel, services and facilities as may be reasonably 
necessary to enable the Board to exercise its 
powers and perform its duties under this Chap- 
ter. A special fund to be known as the Residential 
Rent Stabilization and Arbitration Fund shall be 
established under the supervision and direction 
of the Board for the receipt of fees under this 
Chapter, such fees to be appropriated by the 
Board of Supervisors for the operation of the 
Board. 

(h) Subject to the budgetary and fiscal limi- 
tations of the Charter, each member shall be 
paid $75 per Commission meeting attended if 
the meeting lasts for six hours or more in a single 
24-hour period. The Commission shall adopt 
rules to allow for payment of an equitable por- 
tion of this per diem if a meeting lasts less than 
six hours. The total per diem shall not exceed 
$750 per month. In addition, each member may 



receive reimbursement for actual expenses in- 
curred in the course and scope of the member's 
duties. (Amended by Ord. 435-86, App. 11/10/86; 
Ord. 162-93, App. 5/28/93; Ord. 222-03, File No. 
031213, App. 9/5/2003) 

SEC. 37.5. MEETINGS OF THE BOARD. 

(a) Time and Place of Meetings. The 

Board shall meet as often as necessary to stay 
current with the workload but in no event less 
than once a month. The time and place of meet- 
ings shall be determined by rules adopted by the 
Board. The first meeting shall be held within 15 
days of the appointment of the first Board. The 
matter of establishing standards for the selec- 
tion of Administrative Law Judges shall be con- 
sidered at the first meeting. 

(b) Quorum. A quorum for the transaction 
of official business shall consist of a majority of 
the total Board members. No action may be 
taken by the Board at any meeting attended by 
less than the quorum. A decision by the Board 
shall require a majority of all of the members of 
the Board. 

(c) Special Meetings. The Board may hold 
special meetings in accordance with Charter 
Section 3.500. 

(d) Meetings Open and Public. All meet- 
ings of the Board shall be open and public in 
accordance with the Charter and applicable State 
law. (Added by Ord. 276-79, App. 6/12/79; amended 
by Ord. 347-99, File No. 992197, App. 12/30/99) 

SEC. 37.6. POWERS AND DUTIES. 

In addition to other powers and duties set 
forth in this Chapter, and in addition to powers 
under the Charter and under other City Codes, 
including powers and duties under Administra- 
tive Code Chapter 49 ("Interest Rates on Secu- 
rity Deposits"), the Board shall have the power 
to: 

(a) Promulgate policies, rules and regula- 
tions to effectuate the purposes of this Chapter, 
and to effectuate the purposes of Administrative 
Code Chapter 41D; 



Supp. No. 2, October 2006 



3669 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.7. 



(b) Hire such staff, including Administra- 
tive Law Judges, as may be reasonably neces- 
sary to perform its functions, and promulgate 
standards for all such staff, subject to the Civil 
Service provisions of the Charter; 

(c) Conduct rental arbitration hearings and 
residential hotel visitor policy hearings, and ad- 
minister oaths and affirmations in connection 
with such hearings; 

(d) Publish, on March 1st of each year, the 
increase in the CPI for the preceding 12 months, 
as made available by the U.S. Department of 
Labor; 

(e) Make studies and surveys and conduct 
such hearings as necessary to perform its func- 
tions; 

(f) Report biannually to the Mayor and the 
Board of Supervisors on its activities and on 
progress made towards the achievement of the 
purposes of the Chapter; 

(g) Make available to the public, on request, 
policies, rules and regulations, reports and sur- 
veys in accordance with applicable State law; 

(h) Issue rules and regulations for the con- 
duct of its own affairs; 

(i) Be empowered to request and, if granted, 
to receive funds appropriated by the Board of 
Supervisors through the Mayor; 

(j) Maintain, on at least a monthly basis, 
statistics on the number of notices to vacate filed 
with the Board pursuant to Section 37.9(c) and 
statistics on the causes given in such notices or 
in any additional written documents as provided 
in Section 37.9(c). Statistics shall include avail- 
able data on evictions involving school-age (kin- 
dergarten through grade twelve) children, includ- 
ing data on whether the evictions occurred during 
the school term. Said statistics shall be pub- 
lished in a report on March 1st every year, and 
copies of the report shall be submitted to the 
Mayor and Board of Supervisors; 

(k) Compile a list at random, on a monthly 
basis, of 10 percent of the notices to vacate filed 
pursuant to Section 37.9(c) which state on the 
notice or in any additional written document any 
causes under Section 37.9(a)(8) as the reason for 



eviction. Said list shall be transmitted to the 
District Attorney on a monthly basis for investi- 
gation pursuant to Section 37.9(c). 

(1) Periodically review the Uniform Visitor 
Policy for Residential Hotels and determine 
amendments as appropriate; and hear and deter- 
mine hotel operator petitions for Supplemental 
Visitor Policies, consistent with Administrative 
Code Chapter 41D (Residential Hotel Visitor 
Policies). 

(m) Hear and decide petitions from residen- 
tial hotel occupants (whether or not an occupant 
qualifies as a "tenant" under this Chapter 37) 
who allege violation of Administrative Code Chap- 
ter 41D, including alleged violations of the Uni- 
form Visitor Policy or any approved Supplemen- 
tal Visitor Policy. Current or former hotel 
occupants may file such petitions. These peti- 
tions may require a determination whether, and 
to what extent, a residential hotel's policies are 
in compliance with Administrative Code Chapter 
41D, including compliance with the Uniform 
Visitor Policy (Amended by Ord. 7-87, App. 1/15/ 
87; Ord. 347-99, File No. 992197, App. 12/30/99; 
Ord. 62-02, File No. 020343, App. 5/3/2002; Ord. 
107-02, File No. 020296, App. 7/5/2002; Ord. 
251-06, File No. 061077, App. 10/11/2006) 

SEC. 37.7. CERTIFICATION OF RENT 
INCREASES FOR CAPITAL 
IMPROVEMENTS, REHABILITATION 
WORK, ENERGY CONSERVATION 
IMPROVEMENTS, AND RENEWABLE 
ENERGY IMPROVEMENTS. 

(a) Authority. In accordance with such 
guidelines as the Board shall establish, the Board 
and designated Administrative Law Judges shall 
have the authority to conduct hearings in order 
to certify rental increases to the extent necessary 
to amortize the cost of capital improvements, 
rehabilitations, energy conservation improve- 
ments, and renewable energy improvements. Costs 
determined to be attributable to such work and 
improvements shall be amortized over a period 
which is fair and reasonable for the tj^ie and the 
extent of the work and improvements, £md which 
will provide an incentive to landlords to main- 
tain, improve and renovate their properties while 



Supp. No. 2, October 2006 



Sec. 37.7. 



San Francisco - Administrative Code 



3670 



at the same time protecting tenants from exces- 
sive rent increases. Costs attributable to routine 
repair and maintenance shall not be certified. 

(b) Requirements for Certification. The 
Board and designated Administrative Law Judges 
may only certify the costs of capital improve- 
ments, rehabilitation, energy conservation im- 
provements, and renewable energy improve- 
ments, where the following criteria are met: 

(1) The landlord completed capital improve- 
ments or rehabilitation on or after April 15, 
1979, or the landlord completed installation of 
energy conservation measures on or after July 
24, 1982, and has filed a proof of compliance with 
the Bureau of Building Inspection in accordance 
with the requirements of Section 1207(d) of the 
Housing Code; 

(2) The landlord has not yet increased the 
rent or rents to reflect the cost of said work; 

(3) The landlord has not been compensated 
for the work by insurance proceeds; 

(4) The building is not subject to a RAP loan 
in a RAP area designated prior to July 1, 1977; 

(5) The landlord files the certification peti- 
tion no later than five years after the work has 
been completed; 

(6) The cost is not for work required to 
correct a code violation for which a notice of 
violation has been issued and remained un- 
abated for 90 days unless the landlord made 
timely good faith efforts within that 90-day pe- 
riod to commence and complete the work but was 
not successful in doing so because of the nature 
of the work or circumstances beyond the control 
of the landlord. The landlord's failure to abate 
within the original 90-day period raises a rebut- 
table presumption that the landlord did not 
exercise timely good faith efforts. 

(c) Amortization and Cost Allocation. 

The Board shall establish amortization periods 
and cost allocation formulas, in accordance with 
this Section 37.7. Costs shall be allocated to each 
unit according to the benefit of the work and 
improvements attributable to such unit. 

(1) Application Filed Before [May 1, 2002 
or 60 Days Prior to Passage of This Ordi- 
nance on Second Reading, Whichever is 



Later]. The following provisions shall apply to 
all apphcations filed before [May 1, 2002 or 60 
days prior to passage of this Ordinance on Sec- 
ond Reading, whichever is later]. 

(A) Amortization Periods. Costs shall be 
amortized on a straight-line basis over a seven or 
ten-year period, depending upon which category 
described below most closely relates to the type 
of work or improvement and its estimated useful 
life. 

(i) Schedule I — Seven-Year Amortiza- 
tion. The following shall be amortized over a 
seven-year period: Appliances, such as new stoves, 
disposals, washers, dryers and dishwashers; fix- 
tures, such as garage door openers, locks, light 
fixtures, water heaters and blankets, shower 
heads, time clocks and hot water pumps; and 
other improvements, such as carpeting, lino- 
leum, and exterior and interior painting of com- 
mon areas. If the appliance is a replacement for 
which the tenant has already had the benefit, 
the cost will not be amortized as a capital im- 
provement, but will be considered part of oper- 
ating and maintenance expenses. Appliances may 
be amortized as capital improvements when: (1) 
part of a remodeled kitchen; (2) based upon an 
agreement between the tenant and landlord; 
and/or (3) it is a new service or appliance the 
tenant did not previously have. 

(ii) Schedule II — Ten- Year Amortization. 
The following shall be amortized over a ten-year 
period: New foundation, new floor structure, new 
ceiling or walls-new sheetrock, new plumbing 
(new fixtures, or piping), weather stripping, ceil- 
ing insulation, seals and caulking, new furnaces 
and heaters, refrigerators, new electrical wiring, 
new stairs, new roof structure, new roof cover, 
new window, fire escapes, central smoke detec- 
tion system, new wood or tile floor cover, new 
sprinkler system, boiler replacement, air condi- 
tioning-central system, exterior siding or stucco, 
elevator rebuild, elevator cables, additions such 
as patios or decks, central security system, new 
doors, new mail boxes, new kitchen or bathroom 
cabinets, and sinks. 

(B) Allowable Increase. One hundred per- 
cent (100%) of the certified costs of capital im- 
provements, rehabilitation, and energy conser- 



Supp. No. 2, October 2006 



3670.1 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.7. 



vation improvements may be passed through to 
the tenants who benefit from such work and 
improvements. However no increase under this 
Subsection 37.7(c)(1) shall exceed, in a twelve- 
month period, ten percent (10%) of the tenant's 
base rent at the time the petition was filed or 
$30.00, whichever is greater. A landlord may 
accumulate any certified increase which exceeds 
this amount and impose the increase in subse- 
quent years, subject to this 10% or $30.00 limi- 
tation. 

(2) Applications Filed On or After [May 
1, 2002 or 60 Days Prior to Passage of This 
Ordinance on Second Reading, Whichever 
is Later], For Qualified Energy Conserva- 
tion Improvements and Renewable Energy 
Improvements. For Applications filed on or 
after [May 1, 2002 or 60 days prior to passage of 
this Ordinance on Second Reading, whichever is 
later], the following provisions shall apply to 
certification of costs for qualified energy conser- 
vation improvements and renewable energy im- 
provements. 

(A) Amortization Periods. Costs shall be 
amortized on a straight-line basis over the pe- 
riod of time provided in 37.7(c)(2)(B)(i),or as 
determined pursuant to the procedure provided 

in 37.7(c) (2)(B)(ii). 

(B) For purposes of this Subsection 37.7(c)(2), 
qualified energy conservation improvements and 
renewable energy improvements are: 

(i) 100% of new EPA Energy-Star-compliant 
refrigerators where the refrigerator replaced is 
more than live years old and where the unit has 
separate metering, which costs shall be amor- 
tized on straight-line basis over a ten-year pe- 
riod; and, 

(ii) Other improvements as may be ap- 
proved by the Board of Supervisors upon recom- 
mendation of the Rent Board following hearings 
and recommendations by the Commission on the 
Environment in an Energy Conservation Improve- 
ments and Renewable Energy Improvements List 
(List), as follows: 

(I) The Commission on the Environment 
shall hold hearings to develop a list of recom- 
mended energy conservation improvements and 



renewable energy improvements that demonstra- 
bly benefit tenants in units that have separate 
electrical and/or natural gas metering. Such rec- 
ommendations shall include consideration of cost 
effectiveness for tenants, appropriate amortiza- 
tion schedules, and permissible passthrough 
amounts that will encourage landlords to make 
such improvements. 

(II) The Commission shall also consider 
whether the certification for each such improve- 
ment should include the entire improvement, or 
only that portion of the improvement cost di- 
rectly attributable to energy conservation or re- 
newable energy. 



Supp. No. 2, October 2006 



[INTENTIONALLY LEFT BLANK] 



Supp. No. 2, October 2006 



3671 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.7. 



(III) The List shall take into consideration 
the variety and conditions of housing in the City. 

(IV) The Commission on the Environment 
shall adopt the List at a public meeting, and 
shall transmit the List to the Rent Board no later 
than [six months after the effective date of this 
Ordinance] . 

(V) The Commission on the Environment 
shall periodically review and amend the List as 
warranted by changes in technology or condi- 
tions in the electricity and natural gas markets. 
Any amended List shall be transmitted forth- 
with to the Rent Board. 

(VI) The Rent Board shall consider any 
such List received from the Commission on the 
Environment, and recommend appropriate Sub- 
section 37.7(c)(2) amendments to the Board of 
Supervisors. 

(3) Applications Filed On or After [May 
1, 2002 or 60 Days Prior to Passage of This 
Ordinance on Second Reading, Whichever 
is Later], For Seismic Work and Improve- 
ments Required by Law, and for Work and 
Improvements Required by Laws Enacted 
After [May 1, 2002 or 60 days prior to pas- 
sage of this Ordinance on Second Reading, 
whichever is later]. 

For applications filed on or after [May 1, 2002 
or 60 days prior to passage of this Ordinance on 
Second Reading, whichever is later]: 

(A) This Subsection 37.7(c)(3) shall apply to 
certification of costs for seismic work and im- 
provements required by law. 

(B) This Subsection 37.7(c)(3) shall apply to 
certification of costs for capital improvement, 
rehabilitation, energy conservation, and renew- 
able energy work and improvements required by 
federal, state, or local laws enacted on or after 
[IMay 1, 2002 or 60 days prior to passage of this 
Ordinance on Second Reading, whichever is later] . 

(C) Amortization Periods. Costs shall be 
amortized on a straight-line basis over a twenty- 
year period. 

(D) Allowable Increase. One hundred per- 
cent (100%) of the certified costs of capital im- 
provement, rehabilitation, energy conservation, 
and renewable energy work and improvements 



required by law may be passed through to the 
tenants who benefit from such work and improve- 
ments. Any rent increases under this Section 
37.7(c)(3) shall not exceed, in a twelve-month 
period, a total often percent (10%) of the tenant's 
base rent at the time the petition was filed or 
$30.00, whichever is greater. A landlord may 
accumulate any certified increase which exceeds 
this amount and impose the increase in subse- 
quent years, subject to this 10% or $30.00 limi- 
tation. 

(4) Applications Filed On or After [May 
1, 2002 or 60 days prior to passage of this 
Ordinance on Second Reading, whichever 
is later], for Other Work and Improvements 
On Properties With Five Residential Units 
or Less. For applicEitions filed on or after [May 
1, 2002 or 60 days prior to passage of this 
Ordinance on Second Reading, whichever is later] , 
the following provisions shall apply to certifica- 
tion of all work and improvements for properties 
containing five residential units or less, with the 
exception of work and improvements costs certi- 
fied for passthrough under Subsections 37.7(c)(2) 
or (3): 

(A) Amortization Periods. Costs shall be 
amortized on a straight-line basis over a ten, 
fifteen or twenty-year period, depending upon 
which category described below most closely re- 
lates to the type of work or improvement and its 
estimated useful life. 

(i) Schedule I — Ten-Year Amortization. 

The following shall be amortized over a ten-year 
period: New roof structure, new roof cover, elec- 
trical heaters, central security system, telephone 
entry systems, new wood frame windows, new 
mailboxes, weather-stripping, ceiling insulation, 
seals and caulking, central smoke detection sys- 
tem, new doors and skylights; appliances, such 
as new stoves, disposals, refrigerators, washers, 
dryers and dishwashers; fixtures, such as garage 
door openers, locks, light fixtures, water heaters 
and blankets, shower heads, time clocks and hot 
water pumps; and other improvements, such as 
carpeting, linoleum, and exterior and interior 
painting of common areas. If the appliance is a 
replacement for which the tenant has already 



Sec. 37.7. 



San Francisco - Administrative Code 



3672 



had the benefit, the cost will not be amortized as 
a capital improvement but will be considered 
part of operating and maintenance expenses. 
Appliances may be amortized as capital improve- 
ments when: (1) part of a remodeled kitchen; (2) 
based upon an agreement between the tenant 
and landlord; and/or (3) it is a new service or 
appliance the tenant did not previously have, 

(ii) Schedule II — Fifteen- Year Amortiza- 
tion. The following shall be amortized over a 
fifteen-year period: New floor structure, new 
ceiling or walls-new sheetrock, wood decks, new 
stairs, new furnaces and gas heaters, new ther- 
mal pane windows, new wood or tile floor cover, 
new sprinkler systems, air conditioning-central 
system, exterior siding or stucco, elevator re- 
build, elevator cables, new kitchen or bathroom 
cabinets, and sinks. 

(iii) Schedule III — Twenty- Year Amorti- 
zation. The following shall be amortized over a 
twenty-year period: New foundation, new plumb- 
ing (new fixtures or piping), boiler replacement, 
new electrical wiring, fire escapes, concrete pa- 
tios, iron gates, sidewalk replacement and chim- 
neys. 

(B) Allowable Increase. One hundred per- 
cent (100%) of the certified costs of capital im- 
provement, rehabilitation, and energy conserva- 
tion work and improvements may be passed 
through to the tenants who benefit from such 
work and improvements. However, no increase 
under this Subsection 37.7(c)(4) shall exceed, in 
a twelve-month period, five percent (5%) the 
tenant's base rent at the time the petition was 
filed or $30.00, whichever is greater. A landlord 
may accumulate any certified increase which 
exceeds this amount and impose the increase in 
subsequent years subject to this 5% or $30.00 
limitation. 

(5) For Applications Filed On or After 
[May 1, 2002 or 60 Days Prior to Passage of 
This Ordinance on Second Reading, Which- 
ever is Later], for Other Work and Improve- 
ments for Properties with Six or more Resi- 
dential Units. For applications filed on or after 
[May 1, 2002 or 60 days prior to passage of this 
Ordinance on Second Reading, whichever is later]. 



the following provisions shall apply to certifica- 
tion of all work and improvements for properties 
containing six residential units or more, with the 
exception of work and improvements certified 
under Subsections 37.7(c)(2) or (3): 

(A) Amortization Periods. Costs shall be 
amortized on a straight-line basis over a seven or 
ten-year period, depending upon which category 
described below most closely relates to the type 
of work or improvement and its estimated useful 
life. 

(i) Schedule I — Seven-Year Amortiza- 
tion. The following shall be amortized over a 
seven-year period: Appliances, such as new stoves, 
disposals, washers, dryers and dishwashers; fix- 
tures, such as garage door openers, locks, light 
fixtures, water heaters and blankets, shower 
heads, time clocks and hot water pumps; and 
other improvements, such as carpeting, lino- 
leum, and exterior and interior painting of com- 
mon areas. If the appliance is a replacement for 
which the tenant has already had the benefit, 
the cost will not be amortized as a capital im- 
provement, but will be considered part of oper- 
ating and maintenance expenses. Appliances may 
be amortized as capital improvements when: (1) 
part of a remodeled kitchen; (2) based upon an 
agreement between the tenant and landlord; 
and/or (3) it is a new service or appliance the 
tenant did not previously have. 

(ii) Schedule II — Ten-Year Amortization. 
The following shall be amortized over a ten year 
period: New foundation, new floor structure, new 
ceiling or walls — new sheetrock, new plumbing 
(new fixtures or piping), weather stripping, ceil- 
ing insulation, seals and caulking, new furnaces 
and heaters, refrigerators, new electrical wiring, 
new stairs, new roof structure, new roof cover; 
new window, fire escapes, central smoke detec- 
tion system, new wood or tile floor cover, new 
sprinkler system, boiler replacement, air condi- 
tioning — central system, exterior siding or stucco, 
elevator rebuild, elevator cables, additions such 
as patios or decks, central security system, new 
doors, new mail boxes, new kitchen or bathroom 
cabinets, sinks, telephone entry system, sky- 
lights, iron gates, sidewalk replacement and 
chimneys. 



3673 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.7. 



(B) Allowable Increase. 

(i) Only fifty percent (50%) of the costs 
certified under this Subsection 37.7(c)(5) may be 
passed through to the tenants who benefit from 
such work and improvements. However, no in- 
crease under this Subsection 37.7(c)(5) shall ex- 
ceed, in a twelve-month period, ten percent (10%) 
of the tenant's base rent at the time the petition 
was filed or $30.00, whichever is greater. A 
landlord may accumulate any certified increase 
which exceeds this amount and impose the in- 
crease in subsequent years, subject to this 10% 
or $30.00 limitation. 

(ii) In the alternative a tenant may elect to 
have one hundred percent (100%) of the costs 
certified under this Subsection 37.7(c)(5) passed 
through to the tenant. In that event no increase 
under this Subsection shall exceed, in a twelve- 
month period, five percent (5%) of the tenant's 
base rent at the time the application was filed, 
and over the life of the tenancy the total increase 
shall never exceed fifteen percent (15%) of the 
tenant's base rent at the time the application 
was filed. A tenant must elect this alternative by 
filing such an election with the Board on a form 
prescribed by the Board. An election may be filed 
at any time after the application is filed but no 
later than fifteen (15) calendar days after the 
Administrative Law Judge's decision on the ap- 
plication is mailed to the tenant. In a unit with 
multiple tenants, the election form must be signed 
by a majority (more than 50% ) in order for the 
election to be accepted. If a timely election is 
made after a decision has been issued, an adden- 
dum to the decision will be issued reflecting the 
tenant's election. 

(6) Development of On-Line Programs. 

The Board, in conjunction with the Department 
of Telecommunications and Information Ser- 
vices, shall design and implement on-line pro- 
grams by September 1, 2003 to allow landlords 
and tenants to perform calculations concerning 
allowable increases for capital improvement, re- 
habilitation, energy conservation, and renewable 
energy work, and to compare average costs for 
work certified in prior decisions. 



(d) Estimator. The Board or its Executive 
Director may hire an estimator where an expert 
appraisal is required. 

(e) Filing Fee. The Board shall establish a 
filing fee based upon the cost of the capital 
improvement, rehabilitation, energy conserva- 
tion improvement, or renewable energy improve- 
ment being reviewed. Such fees will pay for the 
costs of an estimator. These fees shall be depos- 
ited in the Residential Rent Stabilization and 
Arbitration Fund pursuant to Section 10.117-88 
of this Code. 

(f) Application Procedures. 

(1) Pre- Application Notice for Large 
Projects for Parcels or Buildings Contain- 
ing Six or More Residential Units. If at any 

time prior to filing an application the landlord 
determines that the total cost of a project for a 
parcel or a building containing six or more resi- 
dential units is reasonably expected to exceed 
$25,000 multiplied by the number of units on the 
parcel or in the building, the landlord shall 
immediately inform each tenant and the Rent 
Board in writing of the anticipated costs of the 
work. The landlord's notice must occur within 30 
days after such determination by the landlord. 

(2) Filing. Landlords who seek to pass 
through the costs of capital improvements, reha- 
bilitation, energy conservation improvements, or 
renewable energy improvements, must file an 
application on a form prescribed by the Board. 
The application shall be accompanied by such 
supporting material as the Board shall pre- 
scribe. All applications must be submitted with 
the filing fee established by the Board,, 

For each petition totaling more than $25,000, 
in addition to the supporting material prescribed 
by the Board for all petitions, the applicant must 
either: 

(A) Provide copies of competitive bids re- 
ceived for work and materials; or, 

(B) Provide copies of time and materials 
billing for work performed by all contractors and 
subcontractors; or 

(C) The applicant must pay the cost of an 
estimator hired by the Board. 



Sec. 37.7. 



San Francisco - Administrative Code 



3674 



(3) Filing Date. Applications must be filed 
prior to the mailing or delivery of legal notice of 
a rent increase to the tenants of units for which 
the landlord seeks certification and in no event 
more than five years after the work has been 
completed. 

(4) Effect of Filing Application. Upon 
the filing of the application, the requested in- 
crease will be inoperative until such time as the 
Administrative Law Judge makes findings of 
fact at the conclusion of the certification hearing. 

(5) Notice to Parties. The Board shall 
calendar the application for hearing before a 
designated Administrative Law Judge and shall 
give written notice of the date to the parties at 
least 10 days prior to the hearing. 

(g) Certification Hearings. 

(1) Time of Hearing. The hearing shall be 
held within 45 days of the filing of the applica- 
tion. 

(2) Consolidation. To the greatest extent 
possible, certification hearings with respect to a 
given building shall be consolidated. Where a 
landlord and/or tenant has filed a petition for 
hearing based upon the grounds and under the 
procedure set forth in Section 37.8, the Board 
may, in its discretion, consolidate certification 
hearings with hearings on Section 37.8 petitions. 

(3) Conduct of Hearing. The hearing shall 
be conducted by an Administrative Law Judge 
designated by the Board. Both parties may offer 
such documents, testimony, written declarations 
or other evidence as may be pertinent to the 
proceedings. Burden of proof is on the landlord. A 
record of the proceedings must be maintained for 
purposes of appeal. 

(4) Determination of the Administra- 
tive Law Judge. In accordance with the Board's 
amortization schedules and cost allocation for- 
mulas, the Administrative Law Judge shall make 
findings as to whether or not the proposed rent 
increases are justified based upon the following 
considerations: 

(A) The application and its supporting docu- 
mentation. 



(B) Evidence presented at the hearing es- 
tablishing both the extent and the cost of the 
work performed. 

(C) Estimator's report, where such report 
has been prepared. 

(D) Any other such relevant factors as the 
Board shall specify in rules and regulations. 

(5) Findings of Fact. The Administrative 
Law Judge shall make written findings of fact, 
copies of which shall be mailed within 30 days of 
the hearing. 

(6) Payment or Refund of Rents to Imple- 
ment Certification Decision. If the Adminis- 
trative Law Judge finds that all or any portion of 
the heretofore inoperative rent increase is justi- 
fied, the tenant shall be ordered to pay the 
landlord that amount. If the tenant has paid an 
amount to the landlord which the Administra- 
tive Law Judge finds unjustified, the Adminis- 
trative Law Judge shall order the landlord to 
reimburse the tenant said amount. 

(7) Finality of Administrative Law 

Judge's Decision. The decision of the Adminis- 
trative Law Judge shall be final unless the 
Board vacates his or her decision on appeal. 

(8) Appeals. Either party may file an ap- 
peal of the Administrative Law Judge's decision 
with the Board. Such appeals are governed by 
Section 37.8(f) below. 

(h) Hardship Applications. 

(1) A tenant may file a hardship application 
at any time on grounds of financial hardship 
with respect to any rent increase based on certi- 
fied costs of capital improvements, rehabilitation 
work, energy conservation improvements, or re- 
newable energy improvements. Payment of such 
rent increases(s) set forth in the hardship appli- 
cation shall be stayed for a period of 60 days from 
the date of filing, and the stay shall be extended 
if the Board accepts the application for hearing. 

(2) Hardship applications shall be available 
in multiple languages. 

(3) Multilingual notice of hardship applica- 
tion procedures shall be mailed with each Admin- 
istrative Law Judge or Board decision. 



3675 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.8. 



(4) Within six months after [the efFective 
date of this ordinance] the Rent Board shall 
implement a process for direct outreach to land- 
lords and tenants whose primary language is not 
English, regarding availability and use of the 
hardship application procedure. Within three 
months of implementation the Board shall pro- 
vide a report to the Board of Supervisors regard- 
ing this outreach program, describing the imple- 
mentation process and any known results. 
(Amended by Ord. 438-83, App. 9/2/83; Ord. 
278-89, App. 8/2/89; Ord. 162-93, App. 5/28/93; 
Ord. 347-99, File No. 992197, App. 12/30/99; Ord. 
2-03, File No. 020716, App, 1/21/2003) 

SEC. 37.8. ARBITRATION OF RENTAL 
INCREASE ADJUSTMENTS. 

(a) Authority of Board and Administra- 
tive Law Judge. In accordance with such guide- 
lines as the Board shall establish, the Board and 
designated Administrative Law Judges shall have 
the authority to arbitrate rental increase adjust- 
ments, and to administer the rent increase pro- 
test procedures with respect to RAP rental units 
as set forth in Chapter 32 of the San Francisco 
Administrative Code. 

(b) Request for Arbitration. 

(1) Landlords. Landlords who seek to im- 
pose rent increases which exceed the limitations 
set forth in Section 37.3(a) above must request 
an arbitration hearing as set forth in this Sec- 
tion. The burden of proof is on the landlord. 

(2) Tenants. 

(A) Notwithstanding Section 37.3, tenants 
of non-RAP rental units and tenants of RAP 
rental units in areas designated on or after July 
1, 1977, may request arbitration hearings where 
a landlord has substantially decreased services 
without a corresponding reduction in rent and/or 
has failed to perform ordinary repair and main- 
tenance under State or local law and/or has 
failed to provide the tenant with a clear expla- 
nation of the current charges for gas and elec- 
tricity or bond measure costs passed through to 
the tenant and/or imposed a nonconforming rent 
increase which is null and void. The burden of 
proof is on the tenant. 



(B) Tenants of RAP rental units in areas 
designated prior to July 1, 1977, may petition for 
a hearing where the landlord has noticed an 
increase which exceeds the limitations set forth 
in Section 32.73 of the San Francisco Adminis- 
trative Code. After a vacancy has occurred in a 
RAP rental unit in said areas, a new tenant of 
said unit may petition for a hearing v/here the 
landlord has demanded and/or received a rent 
for that unit which exceeds the rent increase 
limitations set forth in Section 32.73 of the San 
Francisco Administrative Code. The burden of 
proof is on the landlord. 

(c) Procedure for Landlord Petitioners. 

(1) Filing. The request for arbitration must 
be filed on a petition form prescribed by the 
Board and shall be accompanied by such support- 
ing material as the Board shall prescribe, includ- 
ing but not limited to, justification for the pro- 
posed rental increase. 

(2) Filing Date. The petition must be filed 
prior to the mailing or delivering to the tenant or 
tenants legal notice of the rental increase exceed- 
ing the limitations as defined in Section 37.3. 

(3) Effect of Timely Filing of Petition. 
Provided a completed petition is timely filed, 
that portion of the requested rental increase 
which exceeds the limitations set forth in Section 
37.3 and has not been certified as a justifiable 
increase in accordance with Section 37.7 is inop- 
erative until such time as the Administrative 
Law Judge makes findings of fact at the conclu- 
sion of the arbitration hearing. 

(4) Notice to Parties. The Board shall 
calendar the petition for hearing before a desig- 
nated Administrative Law Judge and shall give 
written notice of the date to the parties at least 
10 days prior to the hearing. 

(d) Procedure for Tenant Petitioners. 

(1) Filing; Limitation. The request for ar- 
bitration must be filed on a petition form pre- 
scribed by the Board and must be accompanied 
by such supporting material as the Board shall 
prescribe, including but not limited to, a copy of 
the landlord's notice of rent increase. If the 
tenant petitioner has received certification find- 
ings regarding his rental unit in accordance with 



Sec. 37.8. 



San Francisco - Administrative Code 



3676 



Section 37.7, such findings must accompany the 
petition. If the tenant petitioner has received a 
notification from the Chief Administrative Of- 
ficer with respect to base rent and amortization 
of a RAP loan, such notification must accompany 
the petition. A tenant petition regarding a gas 
and electricity passthrough must be filed within 
one year of the effective date of the passthrough 
or within one year of the date the passthrough 
was required to be recalculated pursuant to rules 
and regulations promulgated by the Board. A 
tenant petition regarding a water revenue bond 
passthrough under Section 37.3(a)(5)(B) must be 
filed within one year of the effective date of the 
passthrough. A tenant petition regarding a gen- 
eral obligation bond cost passthrough under Sec- 
tion 37.3(a)(6) must be filed within one year of 
the effective date of the passthrough. 

(2) Notice to Parties. The Board shall 
calendar the petition for hearing before a desig- 
nated Administrative Law Judge and shall give 
written notice of the date to the parties at least 
10 days prior to the hearing. Responses to a 
petition for hearing may be submitted in writing. 

(e) Hearings. 

(1) Time of Hearing. The hearing shall be 
held within 45 days of the filing of the petition. 
The level of housing services provided to tenants' 
rental units shall not be decreased during the 
period between the filing of the petition and the 
conclusion of the hearing. 

(2) Consolidation. To the greatest extent 
possible, hearings with respect to a given build- 
ing shall be consolidated. 

(3) Conduct of Hearing. The hearing shall 
be conducted by an Administrative Law Judge 
designated by the Board. Both parties may offer 
such documents, testimony, written declarations 
or other evidence as may be pertinent to the 
proceedings. A record of the proceedings must be 
maintained for purposes of appeal. 

(4) Determination of the Administra- 
tive Law Judge: Rental Units. Based upon 
the evidence presented at the hearing and upon 
such relevant factors as the Board shall deter- 
mine, the Administrative Law Judge shall make 
findings as to whether or not the landlord's 



proposed rental increase exceeding the limita- 
tions set forth in Section 37.3 is justified or 
whether or not the landlord has effected a rent 
increase through a reduction in services or has 
failed to perform ordinary repair and mainte- 
nance as required by State or local law; and 
provided further that, where a landlord has 
imposed a passthrough for property taxes pursu- 
ant to Section 37.3(6)(D), the same increase in 
property taxes shall not be included in the cal- 
culation of increased operating and maintenance 
expenses pursuant to this Subsection (4). In 
making such findings, the Administrative Law 
Judge shall take into consideration the following 
factors: 

(A) Increases or decreases in operating and 
maintenance expenses, including, but not lim- 
ited to, real estate taxes, sewer service charges, 
janitorial service, refuse removal, elevator ser- 
vice, security system, and debt service; provided, 
however, when a unit is purchased after the 
effective date of this ordinance, and this pur- 
chase occurs within two years of the date of the 
previous purchase, consideration shall not be 
given to that portion of increased debt service 
which has resulted from a selling price which 
exceeds the seller's purchase price by more than 
the percentage increase in the "Consumer Price 
Index for All Urban Consumers for the San 
Francisco-Oakland Metropolitan Area, U.S. De- 
partment of Labor" between the date of previous 
purchase and the date of the current sale, plus 
the cost of capital improvements or rehabilita- 
tion work made or performed by the seller. 

(B) The past history of increases in the rent 
for the unit and the comparison of the rent for 
the unit with rents for comparable units in the 
same general area. 

(C) Any findings which have been made 
pursuant to Section 37.7 with respect to the unit. 

(D) Failure to perform ordinary repair, re- 
placement and maintenance in compliance with 
applicable State and local law. 

(E) Any other such relevant factors as the 
Board shall specify in rules and regulations. 



3677 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.8. 



(5) Determination of the Administra- 
tive Law Judge: RAP Rental Units. 

(A) RAP Rental Units in RAP Areas Des- 
ignated Prior to July 1, 1977. The Adminis- 
trative Law Judge shall make findings as to 
whether or not the noticed or proposed rental 
increase exceeds the rent increase limitations set 
forth in Section 32.73 of the San Francisco Ad- 
ministrative Code. In making such findings, the 
Administrative Law Judge shall apply the rent 
increase limitations set forth in Chapter 32 of 
the San Francisco Administrative Code and all 
rules and regulations promulgated pursuant 
thereto. The Administrative Law Judge shall 
consider the evidence presented at the hearing. 
The burden of proof shall be on the landlord. 

(B) RAP Rental Units in RAP Areas Des- 
ignated On or After July 1, 1977. The Admin- 
istrative Law Judge shall make findings with 
respect to rent increases exceeding the limita- 
tions as set forth in Section 37.3 of this Chapter. 
In making such findings, the Administrative 
Law Judge shall take into consideration the 
factors set forth in Subsection (4) above and shall 
consider evidence presented at the hearing. The 
burden of proof is on the landlord. 

(6) Findings of Fact. The Administrative 
Law Judge shall make written findings of fact, 
copies of which shall be mailed to the parties 
within 30 days of the hearing. 

( 7 ) Payment or Refund of Rents to Imple- 
ment Arbitration Decision. Upon finding that 
all or any portion of the rent increase is or is not 
justified, or that any nonconforming rent in- 
crease is null and void, the Administrative Law 
Judge may order payment or refund of all or a 
portion of that cumulative amount within 15 
days of the mailing of the findings of fact or may 
order the amount added to or offset against 
future rents; provided, however, that any such 
order shall be stayed if an appeal is timely filed 
by the aggrieved party. The Administrative Law 
Judge may order refunds of rent overpayments 
resulting from rent increases which are null and 
void for no more than the three-year period 
preceding the month of the filing of a landlord or 
tenant petition, plus the period between the 



month of filing and the date of the Administra- 
tive Law Judge's decision. In any case, calcula- 
tion of rent overpayments and re-setting of the 
lawful base rent shall be based on a determina- 
tion of the validity of all rent increases imposed 
since April 1, 1982, in accordance with Sections 
37.3(b)(5) and 37.3(a)(2) above. 

(8) Finality of Administrative Law 
Judge's Decision. The decision of the Adminis- 
trative Law Judge shall be final unless the 
Board vacates his decision on appeal. 

(f) Appeals. 

(1) Time and Manner. Any appeal to the 
Board from the determination of the Administra- 
tive Law Judge must be made within 15 calendar 
days of the mailing of the findings of fact unless 
such time limit is extended by the Board upon a 
showing of good cause. If the fifteenth day falls 
on a Saturday, Sunday or legal holiday, the 
appeal may be filed with the Board on the next 
business day. The appeal shall be in writing and 
must state why appellant believes there was 
either error or abuse of discretion on the part of 
the Administrative Law Judge. The filing of an 
appeal will stay only that portion of any Admin- 
istrative Law Judge's decision which permits 
payment, refund, offsetting or adding rent. 

(2) Record on Appeal. Upon receipt of an 
appeal, the entire administrative record of the 
matter, including the appeal, shall be filed with 
the Board. 

(3) Appeals. The Board shall, in its discre- 
tion, hear appeals. In deciding whether or not to 
hear a given appeal, the Board shall consider, 
among other factors, fairness to the parties, 
hardship to either party, and promoting the 
policies and purposes of this Chapter, in addition 
to any written comments submitted by the Ad- 
ministrative Law Judge whose decision is being 
challenged. The Board may also review other 
material from the administrative record of the 
matter as it deems necessary. A vote of three 
members shall be required in order for an appeal 
to be heard. 

(4) Remand to Administrative Law 
Judge Without Appeal Hearing. In those cases 
where the Board is able to determine on the 



Sec. 37.8. 



San Francisco - Administrative Code 



3678 



basis of the documents before it that the Admin- 
istrative Law Judge has eired, the Board may 
remand the case for further hearing in accor- 
dance with its instructions without conducting 
an appeal hearing. Both parties shall be notified 
as to the time of the re-hearing, which shall be 
conducted within 30 days of remanding by the 
Board. In those cases where the Board is able to 
determine on the basis of the documents before it 
that the Administrative Law Judge's findings 
contain numerical or clerical inaccuracies, or 
require clarification, the Board may continue the 
hearing for purposes of re-referring the case to 
said Administrative Law Judge in order to cor- 
rect the findings. 

(5) Time of Appeal Hearing; Notice to 
Parties. Appeals accepted by the Board shall be 
heard within 45 days of the filing of an appeal. 
Within 30 days of the filing of an appeal, both 
parties shall be notified in writing as to whether 
or not the appeal has been accepted. If the appeal 
has been accepted, the notice shall state the time 
of the hearing and the nature of the hearing. 
Such notice must be mailed at least 10 days prior 
to the hearing. 

(6) Appeal Hearing; Decision of the 

Board. At the appeal hearing, both appellant 
and respondent shall have an opportunity to 
present oral testimony and written documents in 
support of their positions. After such hearing 
and after any further investigation which the 
Board may deem necessary the Board may, upon 
hearing the appeal, affirm, reverse or modify the 
Administrative Law Judge's decision or may 
remand the case for further hearing in accor- 
dance with its findings. The Board's decision 
must be rendered within 45 days of the hearing 
and the parties must be notified of such decision. 

(7) Notification of the Parties. In accor- 
dance with item (6) above, parties shall receive 
written notice of the decision. The notice shall 
state that this decision is final. 

(8) Effective Date of Appeal Decisions. 

Appeal decisions are effective on the date mailed 
to the parties; provided, however, that that por- 
tion of any decision which orders payment, re- 
fund, offsetting or adding rent shall become 



effective 30 calendar days after it is mailed to the 
parties unless a stay of execution is granted by a 
court of competent jurisdiction. 

(9) Limitation of Actions. A landlord or 
tenant aggrieved by any decision of the Board 
must seek judicial review within 90 calendar 
days of the date of mailing of the decision. 
(Amended by Ord. 435-86, App. 11/10/86; Ord. 
278-89, App. 8/2/89; Ord. 127-91, App. 4/2/91; 
Ord. 132-92, App. 5/21/92; Ord. 179-92, App. 
6/22/92; Ord. 162-93, App. 5/28/93; Ord. 363-93, 
App. 11/18/93; Ord. 179-98, App. 5/29/98; Ord. 
347-99, File No. 992197, App. 12/30/99; Ord. 
107-03, File No. 030689, App. 5/23/2003) 

SEC. 37.8A. EXPEDITED HEARING 
PROCEDURES. 

As an alternative to the hearing procedures 
set forth in Sections 37.7(g) and 37.8(e) above, a 
landlord or tenant may, in certain cases, obtain 
an expedited hearing and final order with the 
written consent of all parties. This Section con- 
tains the exclusive grounds and procedures for 
such hearings. 

(a) Applicability. A tenant or landlord may 
seek an expedited hearing for the following peti- 
tions only: 

(1) Any landlord capital improvement peti- 
tion where the proposed increase for certified 
capital improvement costs does not exceed the 
greater of 10 percent or $30 of a tenant's base 
rent and the parties stipulate to the cost of the 
capital improvements; 

(2) Any tenant petition alleging decreased 
housing services with a past value not exceeding 
$1,000 as of the date the petition is filed; 

(3) Any tenant petition alleging the landlord's 
failure to repair and maintain the premises as 
required by state or local law; 

(4) Any tenant petition alleging unlawful 
rent increases where the parties stipulate to the 
tenant's rent history and the rent overpayments 
do not exceed a total of $1,000 as of the date the 
petition is filed; 

(5) Any petition concerning jurisdictional 
questions where the parties stipulate to the 
relevant facts. 



3679 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.8B. 



(b) Hearing Procedures. The petition ap- 
plication procedures of Section 37.7(f) and Sec- 
tion 37.8(c) and (d) apply to petitions for expe- 
dited hearings. The hearings shall be conducted 
according to the following procedures: 

(1) Time of Hearing. The hearing must be 
held within 21 days of the filing of the written 
consent of all the parties. The level of housing 
services provided to tenants' rental units shall 
not be decreased during the period between the 
filing of the petition and the conclusion of the 
hearing. 

(2) Consolidation. To the greatest extent 
possible, and only with the consent of the par- 
ties, hearings with respect to a given building 
shall be consolidated. 

(3) Conduct of Hearing. The hearing shall 
be conducted by an Administrative Law Judge 
designated by the Board. Both parties may offer 
such documents, testimony, written declarations 
or other evidence as may be pertinent to the 
proceedings. Stipulations of the parties as re- 
quired under Section 37.8A(b)(l), (b)(4) and (b)(5) 
shall be required as evidence. Burden of proof 
requirements set forth in Sections 37.7 and 37.8 
are applicable to the hearing categories in Sec- 
tion 37.8A(b) above. No record of the hearing 
shall be maintained for any purpose. 

(4) Order of the Administrative Law 
Judge. Based upon all criteria set forth in 
Sections 37.7(4) and 37.8(e)(4) governing the 
petition, the Administrative Law Judge shall 
make a written order no later than 10 days after 
the hearing. The Administrative Law Judge shall 
make no findings of fact. The Administrative 
Law Judge shall order payment or refund of 
amounts owing to a party or parties, if amounts 
are owed, within a period of time not to exceed 45 
days. 

(5) Stay of Order. The Administrative Law 
Judge's order shall be stayed for 15 days from 
the date of issuance. During this period, either 
party may lodge a written objection to the order 
with the Board. If the Board receives such objec- 
tion within this period, the order is automati- 
cally dissolved and the petitioning party may 



refile the petition for hearing under any other 
appropriate hearing procedure set forth in this 
chapter. 

(6) Finality of Administrative Law 
Judge's Order. If no objection to the Adminis- 
trative Law Judge's order is made pursuant to 
Subsection (c)(5) above, the order becomes final. 
The order is not subject to appeal to the Board 
under Section 37.8(f) nor is it subject to judicial 
review pursuant to Section 37.8(f)(9). (Added by 
Ord. 133-92, App. 5/21/92; amended by Ord. 
347-99, File No. 992197, App. 12/30/99) 

SEC. 37.8B. EXPEDITED HEARING AND 
APPEAL PROCEDURES FOR CAPITAL 
IMPROVEMENTS RESULTING FROM 
SEISMIC WORK ON UNREINFORCED 
MASONRY BUILDINGS PURSUANT TO 
BUILDING CODE CHAPTERS 16B AND 
16C WHERE LANDLORDS PERFORMED 
THE WORK WITH A UMB BOND LOAN. 

This section contains the exclusive proce- 
dures for all hearings concerning certification of 
the above-described capital improvements. Land- 
lords who perform such work without a UMB 
bond loan are subject to the capital improvement 
certification procedures set forth in Section 37.7 
above. 

(a) Requirements for Certification. The 

landlord must have completed the capital im- 
provements in compliance with the require- 
ments of Building Code Chapters 16A and 16C. 
The certification requirements of Section 37.7(b)(2) 
and (b)(3) are also applicable. 

(b) Amortization and Cost Allocation; 
Interest. Costs shall be equally allocated to each 
unit and amortized over a 20-year period or the 
life of any loan acquired for the capital improve- 
ments, whichever is longer. Interest shall be 
limited to the actual interest rate charged on the 
loan and in no event shall exceed 10 percent per 
year. 

(c) Eligible Items; Costs. Only those items 
required in order to comply with Building Code 
Chapters 16A and 16C may be certified. The 
allowable cost of such items may not exceed the 
costs set forth in the Mayor's Office of Economic 



Sec. 37.8B. 



San Francisco - Administrative Code 



3680 



Planning and Development's publication of esti- 
mated cost ranges for bolts plus retrofitting by 
building prototype and/or categories of eligible 
construction activities. 

(d) Hearing Procedures. The application 
procedures of Section 37.7(f) apply to petitions 
for these expedited capital improvement hear- 
ings; provided, however, that the landlord shall 
pay no filing fee since the Board will not hire an 
estimator. The hearings shall be conducted ac- 
cording to the following conducted according to 
the following procedures: 

( 1 ) Time of Hearing; Consolidation; Con- 
duct of Hearing. The hearing must be held 
within 21 days of the filing of the application. 
The consolidation and hearing conduct proce- 
dures of Section 37.7(g)(2) and (g)(3) apply 

(2) Determination of Administrative Law 
Judge. In accordance with the requirements of 
this section, the Administrative Law Judge shall 
make findings as to whether or not the proposed 
rent increases are justified based upon the fol- 
lowing considerations: 

(A) The application and its supporting docu- 
mentation; 

(B) Evidence presented at the hearing es- 
tablishing both the extent and the cost of the 
work performed; and 

(C) The Mayor's Office of Planning and Eco- 
nomic Development's bolts plus cost range pub- 
lication; and 

(D) Tenant objections that the work has not 
been completed; and 

(E) Any other such relevant factors as the 
Board shall specify in rules and regulations. 

(3) Findings of Fact; Effect of Decision. 
The Administrative Law Judge shall make writ- 
ten findings of fact, copies of which shall be 
mailed within 21 days of the hearing. The deci- 
sion of the Administrative Law Judge is final 
unless the Board vacates it on appeal. 

(e) Appeals. Either party may appeal the 
Administrative Law Judge's decisions in accor- 
dance with the requirements of Section 37.8(f)(1), 
(f)(2) and (f)(3). The Board shall decide whether 
or not to accept an appeal within 21 days. 

(1) Time of Appeal Hearing; Notice to 
Parties; Record; Conduct of Hearing. The 
appeal procedures of Section 37.8(f)(5), (f)(6). 



(D(7), (f)(8) and (f)(9) apply; provided, however, 
that the Board's decision shall be rendered within 
20 days of the hearing. 

(2) Rent Increases. A landlord may not 
impose any rent increase approved by the Board 
on appeal without at least 60 days' notice to the 
tenants. (Added by Ord. 221-92, App. 7/14/92; 
amended by Ord. 347-99, File No. 992197, App. 
12/30/99; Ord. 2-03, File No. 020716, App. 1/21/ 
2003) 

SEC. 37.8C. TEMPORARY 
MORATORIUM ON RENT BOARD 
PROCESSING OR APPROVAL OF 
LANDLORD PETITIONS FOR 
CERTIFICATION AND PASSTHROUGH 
OF NON-SEISMIC CAPITAL 
IMPROVEMENT, REHABILITATION AND 
ENERGY CONSERVATION COSTS TO 
TENANTS, DURING PENDENCY OF THE 
SUPERIOR COURT PRELIMINARY 
INJUNCTION STAYING 
IMPLEMENTATION OF NOVEMBER 2000 
PROPOSITION H. 

The Board, Administrative Law Judges and 
other Board staff, are prohibited from processing 
or approving landlord petitions for certification 
and passthrough of capital improvement, reha- 
bilitation and energy conservation costs to ten- 
ants, for a temporary moratorium period com- 
mencing on [the effective date of this ordinance] 
and continuing until the San Francisco Superior 
Court dissolves its preliminary injunction stay- 
ing the implementation of November 2000 Propo- 
sition H (entered December 20, 2000, in Quigg v. 
City and County of San Francisco, et ah, San 
Francisco Superior Court Case No. 316928), ex- 
cept that petitions which seek only certification 
and passthrough of seismic retrofit work shall 
not be affected by this moratorium. This mora- 
torium applies to petitions pending as of the 
effective date of this ordinance and to any land- 
lord petitions filed during the moratorium, 
whether based on Sections 37.3(a)(3), 37.7, and/or 
37.8A. (Added by Ord. 29-01, File No. 010060, 
App. 3/2/2001) 



3681 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.9. 



SEC. 37.9. EVICTIONS. 

Notwithstanding Section 37.3, this Section 
shall apply as of August 24, 1980, to all landlords 
and tenants of rental units as defined in Section 

37.2(r). 

(a) A landlord shall not endeavor to recover 
possession of a rental unit unless: 

(1) The tenant: 

(A) Has failed to pay the rent to which the 
landlord is lawfully entitled under the oral or 
written agreement between the tenant and land- 
lord: 

(i) Except that a tenant's nonpayment of a 
charge prohibited by Section 919.1 of the Police 
Code shall not constitute a failure to pay rent; 
and 

(ii) Except that, commencing August 10, 
2001, to and including February 10, 2003, a 
landlord shall not endeavor to recover or recover 
possession of a rental unit for failure of a tenant 
to pay that portion of rent attributable to a 
capital improvement passthrough certified pur- 
suant to a decision issued after April 10, 2000, 
where the capital improvement passthrough pe- 
tition was filed prior to August 10, 2001, and a 
landlord shall not impose any late fee(s) upon 
the tenant for such non-payment of capital im- 
provements costs; or 

(B) Habitually pays the rent late; or 

(C) Gives checks which are frequently re- 
turned because there are insufficient funds in 
the checking account; or 

(2) The tenant has violated a lawful obliga- 
tion or covenant of tenancy other than the obli- 
gation to surrender possession upon proper no- 
tice or other than an obligation to pay a charge 
prohibited by Police Code Section 919.1, and 
failure to cure such violation after having re- 
ceived written notice thereof from the landlord. 

(A) Provided that notwithstanding any lease 
provision to the contrary, a landlord shall not 
endeavor to recover possession of a rental unit as 
a result of subletting of the rental unit by the 
tenant if the landlord has unreasonably with- 
held the right to sublet following a written re- 
quest by the tenant, so long as the tenant con- 



tinues to reside in the rental unit and the sublet 
constitutes a one-for-one replacement of the de- 
parting tenant(s). If the landlord fails to respond 
to the tenant in writing within fourteen (14) days 
of receipt of the tenant's written request, the 
tenant's request shall be deemed approved by 
the landlord. 

(B) Provided further that where a rental 
agreement or lease provision limits the number 
of occupants or limits or prohibits subletting or 
assignment, a landlord shall not endeavor to 
recover possession of a rental unit as a result of 
the addition to the unit of a tenant's child, 
parent, grandchild, ^p-andparent, brother or sis- 
ter, or the spouse or domestic partner (as defined 
in Administrative Code Sections 62.1 through 
62.8) of such relatives, or as a result of the 
addition of the spouse or domestic partner of a 
tenant, so long as the maximum number of 
occupants stated in Section 37.9(a)(2)(B)(i) and 
(ii) is not exceeded, if the landlord has unreason- 
ably refused a written request by the tenant to 
add such occupant(s) to the unit. If the landlord 
fails to respond to the tenant in writing within 
fourteen (14) days of receipt of the tenant's 
written request, the tenant's request shall be 
deemed approved b}^ the landlord. A landlord's 
reasonable refusal of the tenant's written re- 
quest may not be based on the proposed addi- 
tional occupant's lack of creditworthiness, if that 
person will not be legally obligated to pay some 
or all of the rent to the landlord. A landlord's 
reasonable refusal of the tenant's written re- 
quest may be based on, but is not limited to, the 
ground that the total number of occupants in a 
unit exceeds (or with the proposed additional 
occupant(s) would exceed) the lesser of (i) or (ii): 

(i) Two persons in a studio unit, three per- 
sons in a one-bedroom unit, four persons in a 
two-bedroom unit, six persons in a three-bed- 
room unit, or eight persons in a four-bedroom 
unit; or 

(ii) The maximum number permitted in the 
unit under state law and/or other local codes 
such as the Building, Fire, Housing and Plan- 
ning Codes; or 



Supp. No. 4, January 2007 



Sec. 37.9. 



San Francisco - Administrative Code 



3682 



(3) The tenant is committing or permitting 
to exist a nuisance in, or is causing substantial 
damage to, the rental unit, or is creating a 
substantial interference with the comfort, safety 
or enjoyment of the landlord or tenants in the 
building, and the nature of such nuisance, dam- 
age or interference is specifically stated by the 
landlord in writing as required by Section 37.9(c); 
or 

(4) The tenant is using or permitting a 
rental unit to be used for any illegal purpose; or 

(5) The tenant, who had an oral or written 
agreement with the landlord which has termi- 
nated, has refused after written request or de- 
mand by the landlord to execute a written exten- 
sion or renewal thereof for a further term of like 
duration and under such terms which are mate- 
rially the same as in the previous agreement; 
provided, that such terms do not conflict with 
any of the provisions of this Chapter; or 

(6) The tenant has, after written notice to 
cease, refused the landlord access to the rental 
unit as required by State or local law; or 

(7) The tenant holding at the end of the 
term of the oral or written agreement is a sub- 
tenant not approved by the landlord; or 

(8) The landlord seeks to recover possession 
in good faith, without ulterior reasons and with 
honest intent: 

(i) For the landlord's use or occupancy as 
his or her principal residence for a period of at 
least 36 continuous months; 

(ii) For the use or occupancy of the landlord's 
grandparents, grandchildren, parents, children, 
brother or sister, or the landlord's spouse, or the 
spouses of such relations, as their principal place 
of residency for a period of at least 36 months, in 
the same building in which the landlord resides 
as his or her principal place of residency, or in a 
building in which the landlord is simultaneously 
seeking possession of a rental unit under Section 
37.9(a)(8)(i). For purposes of this Section 
37.9(a)(8)(ii), the term spouse shall include do- 
mestic partners as defined in San Francisco 
Administrative Code Sections 62.1 through 62.8. 



(iii) For purposes of this Section 37.9(a)(8) 
only, as to landlords who become owners of 
record of the rental unit on or before February 
21, 1991, the term "landlord" shall be defined as 
an owner of record of at least 10 percent interest 
in the property or, for Section 37.9(a)(8)(i) only, 
two individuals registered as domestic partners 
as defined in San Francisco Administrative Code 
Sections 62.1 through 62.8 whose combined own- 
ership of record is at least 10 percent. For 
purposes of this Section 37.9(a)(8) only, as to 
landlords who become owners of record of the 
rental unit after February 21, 1991, the term 
"landlord" shall be defined as an owner of record 
of at least 25 percent interest in the property or, 
for Section 37.9(a)(8)(i) only, two individuals reg- 
istered as domestic partners as defined in San 
Francisco Administrative Code Sections 62.1 
through 62.8 whose combined ownership of record 
is at least 25 percent. 

(iv) A landlord may not recover possession 
under this Section 37.9(a)(8) if a comparable unit 
owned by the landlord is already vacant and is 
available, or if such a unit becomes vacant and 
available before the recovery of possession of the 
unit. If a comparable unit does become vacant 
and available before the recovery of possession, 
the landlord shall rescind the notice to vacate 
and dismiss any action filed to recover posses- 
sion of the premises. Provided further, if a non- 
comparable unit becomes available before the 
recovery of possession, the landlord shall offer 
that unit to the tenant at a rent based on the 
rent that the tenant is paying, with upward or 
downward adjustments allowed based upon the 
condition, size, and other amenities of the re- 
placement unit. Disputes concerning the initial 
rent for the replacement unit shall be deter- 
mined by the Rent Board. It shall be evidence of 
a lack of good faith if a landlord times the service 
of the notice, or the filing of an action to recover 
possession, so as to avoid moving into a compa- 
rable unit, or to avoid offering a tenant a replace- 
ment unit. 

(v) It shall be rebuttably presumed that the 
landlord has not acted in good faith if the land- 
lord or relative for whom the tenant was evicted 
does not move into the rental unit within three 



Supp. No. 4, January 2007 



3683 



Residential Rent Stabilization and Arbitration Ordinance 



Sec.37.9. 



months and occupy said unit as that person's 
principal residence for a minimum of 36 continu- 
ous months. 

(vi) Once a landlord has successfully recov- 
ered possession of a rental unit pursuant to 
Section 37.9(a)(8)(i), then no other current or 
future landlords may recover possession of any 
other rental unit in the building under Section 
37.9(a)(8)(i). It is the intention of this Section 
that only one specific unit per building may be 
used for such occupancy under Section 37.9(a)(8)(i) 
and that once a unit is used for such occupancy, 
all future occupancies under Section 37.9(a)(8)(i) 
must be of that same unit, provided that a 
landlord may file a petition with the Rent Board, 
or at the landlord's option, commence eviction 
proceedings, claiming that disability or other 
similar hardship prevents him or her from occu- 
pying a unit which was previously occupied by 
the landlord. 

(vii) If any provision or clause of this amend- 
ment to Section 37.9(a)(8) or the application 
thereof to any person or circumstance is held to 
be unconstitutional or to be otherwise invalid by 
any court of competent jurisdiction, such inval- 
idity shall not affect other chapter provisions, 
and clauses of this Chapter are held to be sever- 
able; or 

(9) The landlord seeks to recover possession 
in good faith in order to sell the unit in accor- 
dance with a condominium conversion approved 
under the San Francisco subdivision ordinance 
and does so without ulterior reasons and with 
honest intent; or 

(10) The landlord seeks to recover posses- 
sion in good faith in order to demolish or to 
otherwise permanently remove the rental unit 
from housing use and has obtained all the nec- 
essary permits on or before the date upon which 
notice to vacate is given, and does so without 
ulterior reasons and with honest intent; pro- 
vided that a landlord who seeks to recover pos- 
session under this Section 37.9(a)(10) shall pay 
relocation expenses as provided in Section 37. 9C 
except that a landlord who seeks to demolish an 
unreinforced masonry building pursuant to Build- 
ing Code Chapters 16B and 16C must provide 



the tenant with the relocation assistance speci- 
fied in Section 37.9A(f) below prior to the tenant's 
vacating the premises; or 

(11) The landlord seeks in good faith to 
remove temporarily the unit from housing use in 
order to be able to carry out capital improve- 
ments or rehabilitation work and has obtained 
all the necessary permits on or before the date 
upon which notice to vacate is given, and does so 
without ulterior reasons and with honest intent. 
Any tenant who vacates the unit under such 
circumstances shall have the right to reoccupy 
the unit at the prior rent adjusted in accordance 
with the provisions of this Chapter. The tenant 
will vacate the unit only for the minimum time 
required to do the work. On or before the date 
upon which notice to vacate is given, the land- 
lord shall advise the tenant in writing that the 
rehabilitation or capital improvement plans are 
on file with the Central Permit Bureau of the 
Department of Building Inspection and that ar- 
rangements for reviewing such plans can be 
made with the Central Permit Bureau. In addi- 
tion to the above, no landlord shall endeavor to 
recover possession of any unit subject to a RAP 
loan as set forth in Section 37.2(m) of this 
Chapter except as provided in Section 32.69 of 
the San Francisco Administrative Code. The 
tenant shall not be required to vacate pursuant 
to this Section 37.9(a)(ll), for a period in excess 
of three months; provided, however, that such 
time period may be extended by the Board or its 
Administrative Law Judges upon application by 
the landlord. The Board shall adopt rules and 
regulations to implement the application proce- 
dure. Any landlord who seeks to recover posses- 
sion under this Section 37.9(a)(ll) shall pay 
relocation expenses as provided in Section 37.9C 
or 

(12) The landlord seeks to recover posses- 
sion in good faith in order to carry out substan- 
tial rehabilitation, as defined in Section 37.2(s), 
and has obtained all the necessary permits on or 
before the date upon which notice to vacate is 
given, and does so without ulterior reasons and 
with honest intent. Notwithstanding the above, 
no landlord shall endeavor to recover possession 
of any unit subject to a RAP loan as set forth in 



Supp. No. 9, June 2007 



Sec.37.9. 



San Francisco - Administrative Code 



3684 



Section 37.2(m) of this Chapter except as pro- 
vided in Section 32.69 of the San Francisco 
Administrative Code; Any landlord who seeks to 
recover possession under this Section 37.9(a)(12) 
shall pay relocation expenses as provided in 
Section 37.9C; or 

(13) The landlord wishes to withdraw from 
rent or lease all rental units within any detached 
physical structure and, in addition, in the case of 
any detached physical structure containing three 
or fewer rental units, any other rental units on 
the same lot, and complies in full with Section 
37. 9A with respect to each such unit; provided, 
however, that guestrooms or efficiency units within 
a residential hotel, as defined in Section 50519 of 
the Health and Safety Code, may not be with- 
drawn from rent or lease if the residential hotel 
has a permit of occupancy issued prior to Janu- 
ary 1, 1990, and if the residential hotel did not 
send a notice of intent to withdraw the units 
from rent or lease (Administrative Code Section 
37.9A(f), Government Code Section 7060.4(a)) 
that was delivered to the Rent Board prior to 
January 1, 2004; or 

(14) The landlord seeks in good faith to 
temporarily recover possession of the unit solely 
for the purpose of effecting lead remediation or 
abatement work, as required by San Francisco 
Health Code Articles 11 or 26. The tenant will 
vacate the unit only for the minimum time 
required to do the work. The relocation rights 
and remedies, established by San Francisco Ad- 
ministrative Code Chapter 72, including but not 
limited to, the pajmient of financial relocation 
assistance, shall apply to evictions under this 
Section37.9(a)(14). 

(15) The landlord seeks to recover posses- 
sion in good faith in order to demolish or to 
otherwise permanently remove the rental unit 
from housing use in accordance with the terms of 
a development agreement entered into by the 
City under Chapter 56 of the San Francisco 
Administrative Code. 

(b) A landlord who resides in the same 
rental unit with his or her tenant may evict said 
tenant without just cause as required under 
Section 37.9(a) above. 



(c) A landlord shall not endeavor to recover 
possession of a rental unit unless at least one of 
the grounds enumerated in Section 37.9(a) or (b) 
above is the landlord's dominant motive for re- 
covering possession and unless the landlord in- 
forms the tenant in writing on or before the date 
upon which notice to vacate is given of the 
grounds under which possession is sought and 
that advice regarding the notice to vacate is 
available from the Residential Rent Stabiliza- 
tion and Arbitration Board, before endeavoring 
to recover possession. A copy of all notices to 
vacate except three-day notices to vacate or pay 
rent and a copy of any additional written docu- 
ments informing the tenant of the grounds under 
which possession is sought shall be filed with the 
Board within 10 days following service of the 
notice to vacate. The District Attorney shall 
determine whether the units set forth on the list 
compiled in accordance with Section 37.6(k) are 
still being occupied by the tenant who succeeded 
the tenant upon whom the notice was served. In 
cases where the District Attorney determines 
that Section 37.9(a)(8) has been violated, the 
District Attorney shall take whatever action he 
deems appropriate under this Chapter or under 
State law. 

(d) No landlord may cause a tenant to quit 
involuntarily or threaten to bring any action to 
recover possession, or decrease any services, or 
increase the rent, or take any other action where 
the landlord's dominant motive is retaliation for 
the tenant's exercise of any rights under the law. 
Such retaliation shall be a defense to any action 
to recover possession. In an action to recover 
possession of a rental unit, proof of the exercise 
by the tenant of rights under the law within six 
months prior to the alleged act of retaliation 
shall create a rebuttable presumption that the 
landlord's act was retaliatory. 

(e) It shall be unlawful for a landlord or any 
other person who wilfully assists the landlord to 
endeavor to recover possession or to evict a 
tenant except as provided in Section 37.9(a) and 
(b). Any person endeavoring to recover posses- 
sion of a rental unit from a tenant or evicting a 
tenant in a manner not provided for in Section 
37.9(a) or (b) without having a substantial basis 



Supp. No. 9, June 2007 



3685 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.9 



in fact for the eviction as provided for in Section 
37.9(a) shall be guilty of a misdemeanor and 
shall be subject, upon conviction, to the fines and 
penalties set forth in Section 37.10A. Any waiver 
by a tenant of rights under this Chapter except 
as provided in Section 37.10A(g), shall be void as 
contrary to public policy. 

(f) Whenever a landlord wrongfully endeav- 
ors to recover possession or recovers possession 
of a rental unit in violation of Sections 37.9 
and/or 37.10 as enacted herein, the tenant or 
Board may institute a civil proceeding for injunc- 
tive relief, money damages of not less than three 
times actual damages, (including damages for 
mental or emotional distress), and whatever 
other relief the court deems appropriate. In the 
case of an award of damages for mental or 
emotional distress, said award shall only be 
trebled if the trier of fact finds that the landlord 
acted in knowing violation of or in reckless 
disregard of Section 37.9 or 37. lOA herein. The 
prevailing party shall be entitled to reasonable 
attorney's fees and costs pursuant to order of the 
court. The remedy available under this Section 
37.9(f) shall be in addition to any other existing 
remedies which may be available to the tenant or 
the Board. 

(g) The provisions of this Section 37.9 shall 
apply to any rental unit as defined in Sections 
37.2(r)(4)(A) and 37.2(r)(4)(B), including where a 
notice to vacate/quit any such rental unit has 
been served as of the effective date of this Ordi- 
nance No. 250-98 but where any such rental unit 
has not yet been vacated or an unlawful detainer 
judgment has not been issued as of the effective 
date of this Ordinance No. 250-98. 

(h) With respect to rental units occupied by 
recipients of tenant-based rental assistance, the 
notice requirements of this Section 37.9 shall be 
required in addition to any notice required as 
part of the tenant-based rental assistance pro- 
gram, including but not limited to the notice 
required under 24 CFR Section 982.3 10(e)(2)(ii). 



(i) The following additional provisions shall 
apply to a landlord who seeks to recover a rental 
unit by utilizing the grounds enumerated in 
Section 37.9(a)(8): 

(1) A landlord may not recover possession of 
a unit from a tenant under Section 37.9(a)(8) if 
the landlord has or receives notice, any time 
before recovery of possession, that any tenant in 
the rental unit: 

(A) Is 60 years of age or older and has been 
residing in the unit for 10 years or more; or 

(B) Is disabled within the meaning of Sec- 
tion 37.9(i)(l)(B)(i) and has been residing in the 
unit for 10 years or more, or is catastrophically 
ill within the meaning of Section 37.9(i)(l)(B)(ii) 
and has been residing in the unit for five years or 
more: 

(i) A "disabled" tenant is defined for pur- 
poses of this Section 37.9(i)(l)(B) as a person who 
is disabled or blind within the meaning of the 
federal Supplemental Security Income/Califor- 
nia State Supplemental Program (SSI/SSP), and 
who is determined by SSI/SSP to qualify for that 
program or who satisfies such requirements 
through any other method of determination as 
approved by the Rent Board; 

(ii) A "catastrophically ill" tenant is defined 
for purposes of this Section 37.9(i)(l)(B) as a 
person who is disabled as defined by Section 
37.9(i)(l)(B)(i), and who is suffering from a life 
threatening illness as certified by his or her 
primary care physician. 

(2) The foregoing provisions of Sections 
37.9(i)(l)(A) and (B) shall not apply where there 
is only one rental unit owned by the landlord in 
the building, or where each of the rental units 
owned by the landlord in the same building 
where the landlord resides (except the unit actu- 
ally occupied by the landlord) is occupied by a 
tenant otherwise protected from eviction by Sec- 
tions 37.9(i)(l)(A) or (B) and where the landlord's 
qualified relative who will move into the unit 
pursuant to Section 37.9(a)(8) is 60 yesors of age 
or older. 

(3) The provisions established by this Sec- 
tion 37.9(i) include, but are not limited to, any 
rental unit where a notice to vacate/quit has 



Supp. No. 15, March 2008 



Sec. 37.9 



San Francisco - Administrative Code 



3686 



been served as of the date this amendment takes 
effect but where the rental unit has not yet been 
vacated or an unlawful detainer judgment has 
not been issued. 

(4) Within 30 days of personal service by 
the landlord of a written request, or, at the 
landlord's option, a notice of termination of ten- 
ancy under Section 37.9(a)(8), the tenant must 
submit a statement, with supporting evidence, to 
the landlord if the tenant claims to be a member 
of one of the classes protected by Section 37.9(i). 
The written request or notice shall contain a 
warning that a tenant's failure to submit a 
statement within the 30 day period shall be 
deemed an admission that the tenant is not 
protected by Section 37.9(i). The landlord shall 
file a copy of the request or notice with the Rent 
Board within 10 days of service on the tenant. A 
tenant's failure to submit a statement within the 
30 day period shall be deemed an admission that 
the tenant is not protected by Section 37.9(i). A 
landlord may challenge a tenant's claim of pro- 
tected status either by requesting a hearing with 
the Rent Board or, at the landlord's option, 
through commencement of eviction proceedings, 
including service of a notice of termination of 
tenancy. In the Rent Board hearing or the evic- 
tion action, the tenant shall have the burden of 
proof to show protected status. No civil or crimi- 
nal liability under Section 37.9(e) or (f) shall be 
imposed upon a landlord for either requesting or 
challenging a tenant's claim of protected status. 

(5) This Section 37.9(i) is severable from all 
other sections and shall be of no force or effect if 
any temporary moratorium on owner/relative 
evictions adopted by the Board of Supervisors 
after June 1, 1998 and before October 31, 1998 
has been invalidated by the courts in a final 
decision. 

(j) Disclosure of Rights to Tenants Be- 
fore and After Sale of Rental Units Subject 
to Section 37.9. 

(1) Disclosure to Tenants By Seller of 

the Property. Before property containing rental 
units subject to Section 37.9 may be sold, the 
owner/seller shall disclose to tenants of the prop- 



erty the rights of tenants during and after the 
sale of the property. This disclosure shall be in 
writing and shall include: 

(A) A statement in bold type of at least 12 
points that tenants can not be evicted or asked to 
move solely because a property is being sold or 
solely because a new owner has purchased that 
property. 

(B) A statement in bold type of at least 12 
points that tenants cannot have their rent in- 
creased above that permitted by Chapter 37 
solely because a property is being sold or solely 
because a new owner has purchased that prop- 
erty 

(C) A statement in bold type of at least 12 
points that the rental agreements of tenants 
cannot be materially changed solely because a 
property is being sold or solely because a new 
owner has purchased that property. 

(D) A statement that the owner's right to 
show units to prospective buyers is governed by 
California Civil Code section 1954, including a 
statement that tenants must receive notice as 
provided by Section 1954, and a statement that a 
showing must be conducted during normal busi- 
ness hours unless the tenant consents to an 
entry at another time. 

(E) A statement that tenants are not re- 
quired to complete or sign any estoppel certifi- 
cates or estoppel agreements, except as required 
by law or by that tenant's rental agreement. The 
statement shall further inform tenants that ten- 
ant rights may be affected by an estoppel certifi- 
cate or agreement and that the tenants should 
seek legal advice before completing or signing an 
estoppel certificate or agreement. 

(F) A statement that information on these 
and other tenant's rights are available at the 
San Francisco Rent Board, 25 Van Ness Ave, San 
Francisco, California, and at the counseling tele- 
phone number of the Rent Board and at its web 
site. 

(2) Disclosure to Tenants by Purchaser 
of the Property. Within 30 days of acquiring 
title to rental units subject to Section 37.9, the 
new purchaser/owner shall disclose to tenants of 



Supp. No. 15, March 2008 



3686.1 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37. 9A. 



the property the rights of tenants following this 
sale of the property. This disclosure shall be in 
writing and shall include: 

(A) A statement in bold type of at least 12 
points that tenants cannot be evicted or asked to 
move solely because a new owner has purchased 
that property. 

(B) A statement in bold type of at least 12 
points that tenants cannot have their rent in- 
creased above that permitted by Chapter 37 
solely because a new owner has purchased that 
property. 

(C) A statement in bold type of at least 12 
points that the rental agreements of tenants 
cannot be materially changed solely because a 
new owner has purchased that property. 

(D) A statement in bold type of at least 12 
points that any tenants, sub-tenants or room- 
mates who were lawful occupants at the time of 
the sale remain lawful occupants. 

(E) A statement in bold type of at least 12 
points: that tenants' housing services as defined 
in Section 37.2(r) first paragraph cannot be 
changed or severed from the tenancy solely be- 
cause a new owner has purchased that property; 
and that tenants' housing services as defined in 
Section 37.2(r) second paragraph that were sup- 
plied in connection with the use or occupancy of 
a unit at the time of sale (such as laundry rooms, 
decks, or storage space) cannot be severed from 
the tenancy by the new purchaser/owner without 



just cause as required by Section 37.9(a). 
(Amended by Ord. 7-87, App. 1/15/87; Ord. 30-91, 
App. 1/22/91; Ord. 192-91, App. 5/31/91; Ord 
221-92, App. 7/14/92; Ord. 405-96, App. 10/21/96 
Ord. 482-97, App. 12/30/97; Ord. 239-98, App 
7/17/98; Ord. 250-98, App. 7/31/98; Ord. 293-98 
App. 10/2/98; amended by Proposition G, 11/3/98 
Ord. 237-99, File No. 990168, Eff 8/30/99; Ord 
347-99, File No. 992197, App. 12/30/99; Ord 
348-99, File No. 991265, App. 12/30/99; Ord 
135-01, File No. 010526, App. 7/6/2001; Ord 
186-01, File No. 011497, App. 7/28/2001; Ord 
23-02, File No. 020153, App. 2/22/2002; Ord 
57-02, File No. 011575, App. 5/3/2002; Ord. 99- 
04, File No. 031992, App. 6/4/2004; Ord. 282-04, 
File No. 030667, App. 12/1/2004; Ord. 21-05, File 
No. 041151, App. 1/21/2005; Amended by Propo- 
sition H, App. 11/7/2006; Ord. 92-07, File No. 
061217, App. 4/27/2007; Ord. 33-08, File No. 
071522, App. 3/17/2008) 

SEC. 37.9A. TENANT RIGHTS IN 
CERTAIN DISPLACEMENTS UNDER 
SECTION 37.9(a)(13). 

This Section 37. 9A applies to certain tenant 
displacements under Section 37.9(a)(13), as speci- 
fied. 

(a) Rent Allowed. 

(1) Except as provided in Section 37.9A(a)(2) 
below, any rental unit which a tenant vacates 
after receiving a notice to quit rel5dng on Section 
37.9(a)(13) (withdrawal of rental units from rent 
or lease under the Elllis Act, California Govern- 
ment Code Sections 7060 et seq.), if again offered 
for rent or lease, must be offered and rented or 
leased at a rent not j^eater than the lawful rent 
in effect at the tirae the notice of intent to 
withdraw rental units is filed with the Board, 
plus annual rent increases available under this 
Chapter 37. 

(A) The provisions of Section 37.9A(a)(l) 
apply to all tenancies commenced during either 
of the following time periods: 

(i) The five-year period after a notice of 
intent to withdraw the rental units is filed with 
the Board, whether or not the notice of intent is 
rescinded or the withdrawal of the units is com- 
pleted pursuant to that notice; 



Supp. No. 15, March 2008 



Sec. 37. 9A. San Francisco - Administrative Code 3686.2 

(ii) The five-year period after the rental 
units are withdrawn. 

(B) This Section 37.9A(a)(l) shall prevail 
over any conflicting provision of law authorizing 
the landlord to establish the rental rate upon the 
initial hiring of the unit. 

(C) If it is asserted that the rent could have 
been increased based on capital improvements, 
rehabilitation or substantial rehabilitation, the 
owner must petition the Rent Board pursuant to 
the procedures of Section 37.7 of this Chapter. 
No increase shall be allowed on account of any 
expense incurred in connection with withdraw- 
ing any unit from rent or lease. 

(2) If a new tenancy was lawfully created in 
a unit before January 1, 2003, following a lawful 
withdrawal of the unit from rent or lease under 
Section 37.9(a)(13), any subsequent new tenan- 
cies for that rental unit are not subject to the 
rent limitations in Section 37.9A(a)(l). 



Supp. No. 15, March 2008 



3687 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.9A 



(b) Treatment of Replacement Units. If 

one or more units covered by Subsection (a) is 
demolished, and one or more new units qualify- 
ing as rental units under this Chapter but for the 
date on which they first receive a certificate of 
final completion and occupancy are constructed 
on the same property, and offered for rent or 
lease within five years of the date the last of the 
original units became vacant, the newly con- 
structed units shall be offered at rents not greater 
than those reasonably calculated to produce a 
fair and reasonable return on the newly con- 
structed units, notwithstanding Section 37.2(r)(5) 
or any other provision of this Chapter. The 
provisions of this Chapter shall thereafter apply. 
The Board shall adopt rules for determining the 
rents necessary to provide a fair and reasonable 
return. 

(c) Rights to Re-Rent. Any owner who 
again offers for rent or lease any unit covered by 
Subsection (a) shall first offer the unit for rent or 
lease to the tenants or lessees displaced from the 
unit as follows: 

(1) If any tenant or lessee has advised the 
owner in writing within 30 days of displacement 
of his or her desire to consider an offer to renew 
the tenancy and has furnished the owner with an 
address to which that offer is to be directed, the 
owner must make such an offer whenever the 
unit is again offered for rent or lease within two 
years of withdrawal. That tenant, lessee, or 
former tenant or lessee may advise the owner at 
any time of a change of address to which an offer 
is to be directed. 

(2) Notwithstanding Subsection (c)(1), if the 
unit is offered for rent or lease within 10 years of 
withdrawal, the owner shall notify the Rent 
Board in writing of the intention to re-rent the 
unit and make an offer to the tenant or lessee 
whenever the tenant or lessee requests the offer 
in writing within 30 days after the owner has 
notified the City of an intention to re-rent the 
unit. If the unit is offered for rent or lease more 
than two j^ears after the date the unit was 
withdrawn from rent or lease, the owner shall be 
liable to any tenant or lessee who was displaced 



for failure to comply with this Subsection (c)(2), 
for punitive damages in an amount which does 
not exceed the contract rent for six months. 

(3) If any former tenant or lessee has re- 
quested an offer to renew the tenancy, either 
directly to the landlord or after notice from the 
Rent Board, then the owner shall offer to rein- 
stitute a rental agireement or lease at rents 
permitted under Subsection (a). This offer shall 
be deposited in the United States mail, by regis- 
tered or certified mail with postage prepaid, 
addressed to the displaced tenant or lessee at the 
address furnished to the owner as provided by 
the tenant and shall describe the terms of the 
offer. The displaced tenant or lessee shall have 
30 days from the deposit of the offer in the mail 
to accept the offer by personal delivery of that 
acceptance or by deposit of the acceptance in the 
United States mail by registered or certified mail 
with postage prepaid. 

(4) If more than one tenant or lessee at- 
tempts to accept the offer for a given unit, the 
landlord shall notify^ each tenant or lessee so 
accepting that other acceptances have been re- 
ceived, and shall further advise each such tenant 
or lessee of the names and addresses of the 
others. If all such tenants or lessees do not 
within 30 days thereafter agree and notify the 
landlord of which tenant(s) or lessee(s) will reoc- 
cupy the unit, the tenant(s) or lessee(s) who first 
occupied the unit previously shall be entitled to 
accept the landlord's offer. If more than one 
eligible tenant or lessee initially occupied the 
unit on the same date, then the first such tenant 
or lessee to have ori^jinally sent notice accepting 
the landlord's offer shall be entitled to occupy the 
unit. 

(d) Re-Rental Within Two Years. If a unit 
covered by Subsection (a) is offered for rent or 
lease within two years of the date of withdrawal: 

(1) The owner shall be liable to any tenant 
or lessee who was displaced from the property for 
actual and exemplary damages. Any action by a 
tenant or lessee pursuant to this paragraph shall 
be brought within three years of withdrawal of 
the unit from rent or lease. However, nothing in 



Supp. No. 1, September 2006 



Sec. 37.9A 



San Francisco - Administrative Code 



3688 



this paragraph precludes a tenant from pursuing 
any alternative remedy available under the law. 

(2) The City may institute a civil proceeding 
against the owner who has again offered the unit 
for rent or lease, for exemplary damages for 
displacement of tenants or lessees. Any action by 
the City pursuant to this paragraph shall be 
brought within three years of the withdrawal of 
the unit from rent or lease. 

(e) Relocation Payments to Tenants. 

(1) Before August 10, 2004, Low Income, 
Elderly or Disabled. Where a landlord seeks 
eviction based upon Section 37.9(a)(13), and the 
notice of intent to withdraw rental units was 
filed with the Board before August 10, 2004, the 
relocation payments described in this Subsection 
37.9A(e)(l) shall be limited to tenants who are 
members of lower income households, who are 
elderly, or who are disabled, as defined below. 

(A) Tenants who are members of lower in- 
come households, as defined by Section 50079.5 
of the California Health and Safety Code, and 
who receive a notice to quit based upon Section 
37.9(a)(13), in addition to all rights under any 
other provisions of law, shall be entitled to re- 
ceive $4,500, $2,250 of which shall be paid within 
fifteen (15) calendar days of the landlord's re- 
ceipt of written notice from the tenants of their 
entitlement to the relocation pajmient, and $2,250 
of which shall be paid when the tenants vacate 
the unit. 

(B) With respect to Subsection 37.9A(e)(l)(A), 
the Mayor's Office of Housing or its successor 
agency shall annually determine the income 
limits for lower income households, adjusted for 
household size. 

(C) Notwithstanding Subsection 37.9A(e) 
(1)(A), and irrespective of the size of the unit, any 
tenant who receives a notice to quit under Sec- 
tion 37.9(a)(13) and who, at the time such notice 
is served, is 62 years of age or older, or who is 
disabled within the meaning of Section 12955.3 
of the California Government Code, shall be 
entitled to receive $3,000, $1,500 of which shall 
be paid within fifteen (15) calendar days of the 
landlord's receipt of written notice from the 



tenant of entitlement to the relocation payment, 
and $1,500 of which shall be paid when the 
tenant vacates the unit. 

(D) The payments due pursuant to this Sub- 
section 37.9A(e)(l) for any unit which is occupied 
by more than one tenant shall be divided equally 
among all the occupjdng tenants, excluding those 
tenants who are separately entitled to payments 
under Subsection 37.9A(e)(l)(C) above. 

(2) On August 10, 2004 and until (Effec- 
tive Date of Ordinance Amendments.) Where 
a landlord seeks eviction based upon Section 
37.9(a)(13) and either (i) the notice of intent to 
withdraw rental units is filed with the Board on 
or after August 10, 2004 through (the effective 
date of ordinance amendments), or (ii) the notice 
of intent to withdraw rental units was filed with 
the Board prior to August 10, 2004 but the 
tenant still resided in the unit as of August 10, 
2004, relocation payments shall be paid to the 
tenants as follows: 

(A) Tenants who are members of lower in- 
come households, as defined by Section 50079.5 
of the California Health and Safety Code, shall 
be entitled to receive $4,500, $2,250 of which 
shall be paid within fifteen (15) calendar days of 
the landlord's receipt of written notice from the 
tenants of their entitlement to the relocation 
payment, and $2,250 of which shall be paid when 
the tenants vacate the unit. 

(B) Subject to Subsections 37.9A(e)(2)(C) and 
(D) below, tenants who are not members of lower 
income households, as defined by Section 50079.5 
of the California Health and Safety Code, shall 
be entitled to receive $4,500, which shall be paid 
when the tenant vacates the unit; 

(C) In the event there are more than three 
tenants in a unit, the total relocation pajnnent 
shall be $13,500.00, which shall be divided equally 
by the number of tenants in the unit; 

(D) Notwithstanding Subsection 
37.9A(e)(2)(A) and (B), any tenant who, at the 
time the notice of intent to withdraw rental units 
is filed with the Board, is 62 years of age or older, 
or who is disabled within the meaning of Section 
12955.3 of the California Government Code, shall 
be entitled to receive an additional payment of 



Supp. No. 1, September 2006 



3689 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.9A 



$3,000.00, $1,500.00 of which shall be paid within 
fifteen (15) calendar days of the landlord's re- 
ceipt of written notice from the tenant of entitle- 
ment to the relocation payment, and $1,500.00 of 
which shall be paid when the tenant vacates the 
unit, 

(3) On or After (Effective Date of Ordi- 
nance Amendments). Where a landlord seeks 
eviction based upon Section 37.9(a)(13), and the 
notice of intent to withdraw rental units is filed 
with the Board on or after (effective date of 
ordinance amendments), relocation payments shall 
be paid to the tenants as follows: 

(A) Subject to Subsections 37.9(e)(3)(B)(C) 
and (D) below, each tenant shall be entitled to 
receive $4,500.00, one-half of which shall be paid 
at the time of the service of the notice of termi- 
nation of tenancy, and one-half of which shall be 
paid when the tenant vacates the unit; 

(B) In the event there are more than three 
tenants in a unit, the total relocation payment 
shall be $13,500.00, which shall be divided equally 
by the number of tenants in the unit; and 

(C) Notwithstanding Subsections 37.9A(e) 
(3)(A) and (B), any tenant who, at the time the 
notice of intent to withdraw rental units is filed 
with the Board, is 62 years of age or older, or who 
is disabled within the meaning of Section 12955.3 
of the California Government Code, shall be 
entitled to receive an additional payment of 
$3,000.00, $1,500.00 of which shall be paid within 
fifteen (15) calendar days of the landlord's re- 
ceipt of written notice from the tenant of entitle- 
ment to the relocation payment, and $1,500.00 of 
which shall be paid when the tenant vacates the 
unit. 

(D) Commencing March 1, 2005, the reloca- 
tion payments specified in 37.9A(e)(3)(A) and (B) 
and (C) shall increase annually at the rate of 
increase in the "rent of primary residence" ex- 
penditure category of the Consumer Price Index 
(CPI) for All Urban Consumers in the San Fran- 
cisco-Oakland-San Jose Region for the preceding 
calendar year, as that data is made available by 
the United States Department of Labor and 
published by the Board. 



(4) Any notice to quit pursuant to Section 
37.9(a)(13) shall notify the tenant or tenants 
concerned of the right to receive payment under 
Subsections 37.9A(e)(l) or (2) or (3) and the 
amount of pa5niient which the landlord believes 
to be due. 

(f) Notice to Rent Board; Recordation 
of Notice; Effective Date of Withdrawal. 

(1) Any owner who intends to withdraw 
from rent or lease any rental unit shall notify the 
Rent Board in writing of said intention. Said 
notice shall contain statements, under penalty of 
pejrjury, providing information on the number of 
residential units, the address or location of those 
units, the name or names of the tenants or 
lessees of the units, and the rent applicable to 
each residential rental unit. Said notice shall be 
signed by all owners of record of the property 
under penalty of perjury and shall include a 
certification that actions have been initiated as 
required by law to terminate existing tenancies 
through service of a notice of termination of 
tenancy. The notice must be served by certified 
mail or any other manner authorized by law 
prior to delivery to the Rent BoEird of the notice 
of intent to withdravv^ the rental units. Informa- 
tion respecting the name or names of the ten- 
ants, the rent applicable to any unit, or the total 
number of units, is confidential and shall be 
treated as confidential information by the City 
for purposes of the Information Practices Act of 
1977, as contained in Chapter 1 (commencing 
with Section 1798) of Title 1.8 of Part 4 of 
Division 3 of the Civil Code. The City shall, to the 
extent required by the preceding sentence, be 
considered an "agency," as defined by Subdivi- 
sion (b) of Section 1798.3 of the Civil Code. 

(2) Prior to the effective date of withdrawal 
of rental units under this Section, the owner 
shall cause to be recorded with the County 
Recorder a memorandum of the notice required 
by Subsection (f)(1) summarizing its provisions, 
other than the confidential provisions, in sub- 
stantially the following form: 

Memorandum of Notice 

Regarding Withdrawal of 

Rental Unit From Rent or Lease 

This memorandum evidences that the under- 
signed, as the owner(s) of the property de- 



Supp. No. 1, Septemiber 2006 



Sec. 37.9A 



San Francisco - Administrative Code 



3690 



scribed in Exhibit A attached, has filed a 
notice, whose contents are certified under pen- 
alty of perjury, stating the intent to withdraw 
from rent or lease all units at said property, 
pursuant to San Francisco Administrative Code 
Section 37. 9A and the ElHs Act (California 
Government Code Sections 7060 et seq.). 



(Signature) 

(3) For a notice of intent to withdraw rental 
units filled with the Rent Board on or before 
December 31, 1999, the date on which the units 
are withdrawn from rent or lease for purposes of 
this Chapter and the Ellis Act is 60 days from the 
delivery in person or by first-class mail of the 
Subsection (f)(1) notice of intent to the Rent 
Board. 

(4) For a notice of intent to withdraw rental 
units filed with the Rent Board on or after 
January 1, 2000, the date on which the units are 
withdrawn from rent or lease for purposes of this 
Chapter and the Ellis Act is 120 days from the 
delivery in person or by first-class mail of the 
Subsection (f)(1) notice of intent to the Rent 
Board. Except that, if the tenant or lessee is at 
least 62 years of age or disabled as defined in 
Government Code § 12955.3, and has lived in his 
or her unit for at least one year prior to the date 
of delivery to the Rent Board of the Subsection 
(f)(1) notice of intent to withdraw, then the date 
of withdrawal of the unit of that tenant or lessee 
shall be extended to one year after the date of 
delivery of that notice to the Rent Board, pro- 
vided that the tenant or lessee gives written 
notice of his or her entitlement to an extension of 
the date of withdrawal to the owner within 60 
days of the date of delivery to the Rent Board of 
the Subsection (D(l) notice of intent to withdraw. 
In that situation, the following provisions shall 
apply: 

(A) The tenancy shall be continued on the 
same terms and conditions as existed on the date 
of delivery to the Rent Board of the notice of 
intent to withdraw, subject to any adjustments 
otherwise available under Administrative Code 
Chapter 37. 



(B) No party shall be relieved of the duty to 
perform any obligation under the lease or rental 
agreement. 

(C) The owner may elect to extend the date 
of withdrawal on any other units up to one year 
after date of delivery to the Rent Board of the 
Subsection (0(1) notice of intent to withdraw, 
subject to Subsections (f)(4)(A) and (B). 

(D) Within 30 days of the notification by the 
tenant or lessee to the owner of his or her 
entitlement to an extension of the date of with- 
drawal, the owner shall give written notice to the 
Rent Board of the claim that the tenant or lessee 
is entitled to stay in their unit for one year after 
the date of delivery to the Rent Board of the 
Subsection (f)(1) notice of intent to withdraw. 

(E) Within 90 days of the date of delivery to 
the Rent Board of the notice of intent to with- 
draw, the owner shall give written notice to the 
Rent Board and the affected tenant or lessee of 
the following: 

(i) Whether or not the owner disputes the 
tenant's claim of extension; 

(ii) The new date of withdrawal under Sec- 
tion 37.9A(f)(4)(C), if the owner does not dispute 
the tenant's claim of extension; and, 

(iii) Whether or not the owner elects to 
extend the date of withdrawal to other units on 
the property. 

(5) Within 15 days of delivery of a Subsec- 
tion (f)(1) notice of intent to the Rent Board, the 
owner shall provide notice to any tenant or 
lessee to be displaced of the following: 

(A) That the Rent Board has been notified 
pursuant to Subsection (f)(1); 

(B) That the notice to the Rent Board speci- 
fied the name and the amount of rent paid by the 
tenant or lessee as an occupant of the rental 
unit; 

(C) The amount of rent the owner specified 
in the notice to the Rent Board; 

(D) The tenant's or lessee's rights to reoccu- 
pancy and to relocation assistance under Subsec- 
tions 37.9A(c) and (e); and 



Supp. No. 1, September 2006 



3691 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.9B. 



(E) The rights of quahfied elderly or dis- 
abled tenants as described under Subsection 
(f)(4), to extend their tenancy to one year after 
the date of delivery to the Rent Board of the 
Subsection (f)(1) notice of intent to withdraw. 

(6) Within 30 days after the effective date of 
withdrawal of rental units under this Section 
37. 9A, the Rent Board shall record a notice of 
constraints with the County Recorder which de- 
scribes the property and the dates of applicable 
restrictions on the property under this Section. 

(g) Successor Owners. The provisions of 
this Section 37. 9A shall apply to the owner of a 
rental unit at the time displacement of a tenant 
or tenants is initiated and to any successor in 
interest of the owner, subject to the provisions of 
Chapter 12.75 of Division 7 of Title 1 of the 
California Government Code (Sections 7060 et 
seq.). 

(h) Reports Required. 

(1) Not later than the last day of the third 
and sixth calendar months following the month 
in which notice is given to the Board under 
Subsection (f)(1), and thereafter not later than 
December 31st of each calendar year for a period 
of five years, beginning with the year in which 
the six-month notice is given, the owner of any 
property which contains or formerly contained 
one or more rental units which a tenant or 
tenants vacated pursuant to Section 37.9(a)(13) 
shall notify the Board, in writing, under penalty 
of perjury, for each such unit: 

(A) Whether the unit has been demolished; 

(B) If the unit has not been demolished, 
whether it is in use; 

(C) If it is in use, whether it is in residential 
use; 

(D) If it is in residential use, the date the 
tenancy began, the name of the tenant(s), and 
the amount of rent charged. 

If the unit has been demolished, and one or 
more new units constructed on the lot, the owner 
shall furnish the information required by items 
(B), (C) and (D) for each new unit. The Board 
shall maintain a record of the notices received 



under Subsection (i) and all notices received 
under this Section for each unit subject to this 
reporting requirement. 

(2) The Board shall notify each person who 
is reported as having become a tenant in a 
vacated or new unit subject to the reporting 
requirements of Subsection (h)(1) that it main- 
tains the records described in Subsection (h)(1), 
and that the rent of the unit may be restricted 
pursuant to Subsection (a). 

(3) The Board shall maintain a register of 
all rental units withdrawn from rent or lease 
under the Ellis Act and the rent applicable to 
each unit at the time of withdrawal. The Board 
shall inform tenants displaced from units with- 
drawn from rent or lease at the address provided 
by the tenant, when the owner notifies the Board 
that the unit or replacement unit will again be 
offered for rent or lease within ten yeairs of the 
date of withdrawal. 

(4) The Board may investigate whether a 
rental unit that was withdrawn from rent or 
lease has been again offered for rent or lease, 
and whether the owner has complied with the 
provisions of this Section. 

(i) This Section 37.9Ais enacted principally 
to exercise specific authority provided for by 
Chapter 12.75 of Division 7 of Title 1 of the 
California Government Code, originally enacted 
by Stats. 1985, Ch. 1509, Section 1 (the Elhs Act, 
California Government Code Sections 7060 et 
seq.). In the case of any amendraent to Chapter 
12.75 or any other provision of State law which 
amendment is inconsistent with this Section, 
this Section shall be deemed to be amended to be 
consistent with State law, and to the extent it 
cannot be so amended shall be interpreted to be 
effective as previously adopted to the maximum 
extent possible. (Added by Ord. 193-86, App. 
5/30/86; amended by Ord. 320-94, App. 9/15/94; 
Ord. 348-99, File No. 991265, App. 12/30/99; Ord. 
5-00, File No. 992236, App. 1/14/2000; Ord. 91- 
03„ File No. 030325, App. 5/16/2003; Ord. 21-05, 
File No. 041151, App. 1/21/2005) 

SEC. 37.9B. TENANT RIGHTS IN 
EVICTIONS UNDER SECTION 37.9(a)(8). 

(a) Any rental unit which a tenant vacates 
after receiving a notice to quit based on Section 
37.9(a)(8), and which is subsequently no longer 



Supp. No. 4, January 2007 



Sec. 37.9B. 



San Francisco - Administrative Code 



3692 



occupied as a principal residence by the landlord 
or the landlord's grandparent, parent, child, grand- 
child, brother, sister, or the landlord's spouse, or 
the spouses of such relations must, if offered for 
rent during the three-year period following ser- 
vice of the notice to quit under Section 37.9(a)(8), 
be rented in good faith at a rent not greater than 
at which would have been the rent had the 
tenant who had been required to vacate re- 
mained in continuous occupancy and the rental 
unit remained subject to this Chapter. If it is 
asserted that a rent increase could have taken 
place during the occupancy of the rental unit by 
the landlord if the rental unit had been subjected 
to this Chapter, the landlord shall bear the 
burden of proving that the rent could have been 
legally increased during the period. If it is as- 
serted that the increase is based in whole or in 
part upon any grounds other than that set forth 
in Section 37.3(a)(1), the landlord must petition 
the Rent Board pursuant to the procedures of 
this Chapter. Displaced tenants shall be entitled 
to participate in and present evidence at any 
hearing held on such a petition. Tenants dis- 
placed pursuant to Section 37.9(a)(8) shall make 
all reasonable efforts to keep the Rent Board 
apprised of their current address. The Rent 
Board shall provide notice of any proceedings 
before the Rent Board to the displaced tenant at 
the last address provided by the tenant. No 
increase shall be allowed on account of any 
expense incurred in connection with the displace- 
ment of the tenant. 

(b) Any landlord who, within three years of 
the date of service of the notice to quit, offers for 
rent or lease any unit in which the possession 
was recovered pursuant to Section 37.9(a)(8) 
shall first offer the unit for rent or lease to the 
tenants displaced in the same manner as pro- 
vided for in Sections 37.9A(c) and (d). 

(c) In addition to complying with the require- 
ments of Section 37.9(a)(8), an owner who en- 
deavors to recover possession under Section 
37.9(a)(8) shall inform the tenant of the follow- 
ing information in writing and file a copy with 
the Rent Board within 10 days after service of 



the notice to vacate, together with a copy of the 
notice to vacate and proof of service upon the 
tenant; 

(1) The identity and percentage of owner- 
ship of all persons holding a full or partial 
percentage ownership in the property; 

(2) The dates the percentages of ownership 
were recorded; 

(3) The name(s) of the landlord endeavoring 
to recover possession and, if applicable, the 
name(s) and relationship of the relative(s) for 
whom possession is being sought and a descrip- 
tion of the current residence of the landlord or 
relative(s); 

(4) A description of all residential proper- 
ties owned, in whole or in part, by the landlord 
and, if applicable, a description of all residential 
properties owned, in whole or in part, by the 
landlord's grandparent, parent, child, grand- 
child, brother, or sister for whom possession is 
being sought; 

(5) The current rent for the unit and a 
statement that the tenant has the right to re- 
rent the unit at the same rent, as adjusted by 
Section 37.9B(a) above; 

(6) The contents of Section 37. 9B, by pro- 
viding a copy of same; and 

(7) The right the tenant(s) may have to 
relocation costs and the amount of those reloca- 
tion costs. 

(d) The landlord shall pay relocation ex- 
penses as provided in Section 37. 9C. 

(e) Within 30 days after the effective date of 
a written notice to vacate that is filed with the 
Board under Section 37.9B(c) the Board shall 
record a notice of constraints with the County 
Recorder identifying each unit on the property 
that is the subject of the Section 37.9B(c) notice 
to vacate, stating the nature and dates of appli- 
cable restrictions under Sections 37.9(a)(8) and 
37. 9B. If a notice of constraints is recorded but 
the tenant does not vacate the unit, the landlord 
may apply to the Board for a rescission of the 
recorded notice of constraints. (Added by Ord. 
293-98, App. 10/2/98; amended by Ord. 57-02, 
File No. 011575, App. 5/3/2002; Amended by 
Proposition H, App. 11/7/2006) 



Supp. No. 4, January 2007 



3693 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.10A. 




SEC. 37.9C. TENANTS RIGHTS TO 
RELOCATION FOR NO-FAULT 
EVICTIONS. 

(a) Definitions. 

(1) Covered No-Fault Eviction Notice, For 
purposes of this section 37. 9C, a Covered No- 
Fault Eviction Notice shall mean a notice to quit 
based upon Section 37.9(a)(8), (10), (11), or (12). 

(2) Eligible Tenant, For purposes of this 
section 37. 9C, an Eligible Tenant shall mean any 
authorized occupant of a rental unit, regardless 
of age, who has resided in the unit for 12 or more 
months. 

(b) Each Eligible Tenant who receives a 
Covered No-Fault Eviction Notice, in addition to 
all rights under any other provision of law, shall 
be entitled to receive relocation expenses from 
the landlord, in the amounts specified in section 
37.9C(e). 

(c) On or before the date of service of a 
Covered No-Fault Eviction Notice, the landlord 
shall notify all occupant(s) in the unit in writing 
of the right to receive payment under this section 
37. 9C and the amount of that relocation and 
shall provide a copy of section 37. 9C. Such noti- 
fication shall include a statement describing the 
additional relocation expenses available for Eli- 
gible Tenants who are senior or disabled and for 
households with children. The landlord shall file 
a copy of this notification with the Rent Board 
within 10 days after service of the notice, to- 
gether with a copy of the notice to vacate and 
proof of sendee upon the tenant. 

(d) A landlord who pays relocation expenses 
as required by this Section in conjunction with a 
notice to quit need not pay relocation expenses 
with any further notices to quit based upon the 
same just cause under Section 37.9(a) for the 
same unit that are served within 180 days of the 
notice that included the required relocation pay- 
ment. The relocation expenses continued herein 
are separate from any security or other refund- 
able deposits as defined in California Code Sec- 
tion 1950.5. Further, payment or acceptance of 
relocation expenses shall not operate as a waiver 
of any rights a tenant may have under law. 



(e) Relocation expenses shall be: 

(1) Each Eligible Tenant receiving a Cov- 
ered No-Fault Eviction Notice shall receive 
$4,500.00, $2,250.00 of which shall be paid at he 
time of the service of the notice to quit, and 
$2,250.00 of which shall be paid when the unit is 
vacated. In no case, however, shall the landlord 
be obligated under this section 37.9C(e)(l) to 
provide more than $13,500.00 in relocation ex- 
penses to all Eligible Tenants in the same unit. 

(2) In addition, each Eligible Tenant who is 
60 years of age or older or who is disabled within 
the meaning of Section 12955.3 of the California 
Government Code, and each household with at 
least one Eligible Tenant and at last one child 
under the age of 18 years, shall be entitled to 
receive an additional payment of $3,000.00. 
$1,500.00 of which shall be paid within fifteen 
(15) calendar days of the landlord's receipt of 
written notice from the Eligible Tenant of entitle- 
ment to the relocation payment along with sup- 
porting evidence, and $1,500.00 of which shall be 
paid when the Eligible tenant vacated the unit. 
Within 30 days after notification to the landlord 
of a claim of entitlement to additional relocation 
expenses because of disability, age, or having 
children in the household, the landlord shall give 
written notice to the Rent Board of the Claim for 
additional relocation assistance and whether or 
not the landlord disputes the claim. 

(3) Commencing March 1, 2007, these relo- 
cation expenses, including the m.aximu][n reloca- 
tion expenses per unit, shall increase annually, 
rounded to the nearest dollar, at the rate of 
increase in the "rent of primary residence" ex- 
penditure category of the Consumer Price Index 
(CPI) for All Urban Consumers in the San Fran- 
cisco-Oakland-San Jose Region for the preceding 
calendar year, as that data is made available by 
the United States Department of Leibor and 
published by the Board. (Added by Proposition 
H, App. 11/7/2006) 

SEC. 37.10A. MISDEMEANORS, AND 
OTHER ENFORCEMENT PROVISIONS. 

(a) It shall be unlawful for a landlord to 
increase rent or rents in violation of the decision 
of an Administrative Law Judge or the decision 



Supp. No. 4, January 2007 



Sec. 37.10A. 



San Francisco - Administrative Code 



3694 



of the Board on appeal pursuant to the hearing 
and appeal procedures set forth in Section 37.8 of 
this Chapter. It shall further be unlawful for a 
landlord to charge any rent which exceeds the 
limitations of this Chapter. Any person who 
increases rents in violation of such decisions or 
who charges excessive rents shall be guilty of a 
misdemeanor. 

(b) It shall be unlawful for an landlord to 
refuse to rent or lease or otherwise deny to or 
withhold from any person any rental unit be- 
cause the age of a prospective tenant would 
result in the tenant acquiring rights under this 
Chapter. Any person who refuses to rent in 
violation of this subsection shall, in addition to 
any other penalties provide by State or federal 
law, be guilty of a misdemeanor. 

(c) It shall be unlawful for a landlord or for 
any person who willfully assists a landlord to 
request that a tenant move from a rental unit or 
to threaten to recover possession of a rental unit, 
either verbally or in writing, unless: 

(1) The landlord in good faith intends to 
recover said unit under one of the grounds enu- 
merated in Section 37.9(a) or (b); and 

(2) Within five days of any such request or 
threat the landlord seizes the tenant with a 
written notice stating the particular ground un- 
der Section 37.9(a) or (b) that is the basis for the 
landlord's intended recovery of possession of the 
unit. 

(d) It shall be unlawful for a landlord or for 
any person who willfully assists a landlord to 
recover possession of a rental unit unless, prior 
to recovery of possession of the unit: 

(1) The landlord files a copy of the written 
notice required under Section 37.10A(c) with the 
Board together with any preceding warning or 
threat to recover possession, unless the particu- 
lar ground for recovery is non-payment of rent; 
and 

(2) The landlord satisfies all requirements 
for recovery of the unit under Section 37.9(a) or 
(b). 

(e) In any criminal or civil proceeding based 
on a violation of Section 37.10A(c) or 37.10A(d), 
the landlord's failure to use a recovered unit for 



the Section 37.9(a) or (b) ground stated verbally 
or in writing to the tenant from whom the unit 
was recovered shall give rise to a presumption 
that the landlord did not have a good faith 
intention to recover the unit for the stated ground. 

(f) If possession of a rental unit is recovered 
as the result of any written or verbal statement 
to the tenant that the landlord intends to recover 
the unit under one of the grounds enumerated in 
Section 37.9(a) or (b), the unit shall be subject to 
all restrictions set forth under this Chapter on 
units recovered for such stated purpose regard- 
less of any agreement made between the land- 
lord or the landlord's agent and the tenant who 
vacated the recovered unit. Any unit vacated by 
a tenant within 120 days after receiving any 
written or verbal statement from the landlord 
stating that the landlord intends to recover the 
unit under Section 37.9(a) or (b), shall be rebut- 
tably presumed to have been recovered by the 
landlord pursuant to the grounds identified in 
that written or verbal statement. 

(g) Except as provided in this subsection, it 
shall be unlawful for a landlord, or for any 
person who willfully assists a landlord, including 
the landlord's attorney or legal representative, to 
seek or obtain a tenant's agreement not to coop- 
erate with any investigation or proceeding by 
any administrative or law enforcement or other 
governmental agency under this Chapter, or to 
otherwise seek or obtain a tenant's waiver of 
rights under this Chapter. Any waiver of rights 
by a tenant under this Chapter shall be void as 
contrary to public policy unless the tenant is 
represented by independent counsel and the 
waiver is approved in a Court-supervised settle- 
ment agreement, or by a retired judge of the 
California Superior Court sitting as a mediator 
or arbitrator by mutual agreement of the tenant 
represented by independent counsel and the land- 
lord. Any settlement agreement shall identify 
the judge, mediator, or arbitrator reviewing the 
settlement, all counsel representing the parties, 
and any other information as required by the 
Board. The landlord shall file a signed copy of 
the settlement agreement with the Board within 
ten days of execution. Unless otherwise required 



Supp. No. 4, January 2007 



3695 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.12. 



by the Board, the copy of the agreement filed 
with the Board shall redact the amount of pay- 
ments to be made to tenants. 

(h) It shall be unlawful for a landlord to 
knowingly fail to disclose in writing to the buyer, 
prior to entering into a contract for the sale of 
any property consisting of two or more residen- 
tial units, the specific legal ground(s) for the 
termination of the tenancy of each residential 
unit to be delivered vacant at the close of escrow. 

(i) It shall be unlawful for a landlord/owner, 
when offering a property for sale in the City and 
County of San Francisco that includes two or 
more residential units, to knowingly fail to dis- 
close in writing to any prospective purchaser: 

(1) The specific legal ground(s) for the ter- 
mination of the tenancy of each residential unit 
to be delivered vacant at the close of escrow; and, 

(2) Whether the unit was occupied by an 
elderly or disabled tenant at the time the ten- 
ancy was terminated. For purposes of this sec- 
tion 37.10A(i), "elderly" means a tenant defined 
as elderly by San Francisco Administrative Code 
section 37.9(i)(l)(A), 37.9A(e)(l)(C), 37.9A(e)(2)(D), 
or 37.9A(e)(3)(C), or a tenant defined as "senior" 
by San Francisco Subdivision Code section 1359(d). 
For purposes of this section 37.10A(i), "disabled" 
means a tenant defined as disabled by San 
Francisco Administrative Code section 
37.9(i)(l)(B)(i), 37.9A(e)(l)(C), 37.9A(e)(2)(D), or 
37.9A(e)(3)(C), or by San Francisco Subdivision 
Code section 1359(d). 

Any disclosure required by this Subsection (i) 
that is made on a flier or other document describ- 
ing the property which is made available to 
prospective purchasers at each open house and 
at any tour through the property will constitute 
compliance with the disclosure requirements of 
this Subsection (i). 

(j) Any person who violates Section 37. lOA(a), 
(b), (c), (d), (g) or (h) is guilty of a misdemeanor 
and shall be punished by a mandatory fine of one 
thousand dollars ($1,000), and in addition to 
such fine may be punished by imprisonment in 
the County Jail for a period of not more than six 



months. Each violation shall constitute a sepa- 
rate offense. (Added by Ord. 20-84, App. 1/19/84; 
amended by Ord. 20-84, App. 10/2/98; Ord. 347- 
99, File No. 992197, App. 12/30/99; Ord. 57-02, 
File No. 011575, App. 5/3/2002; Amended by 
Proposition B, 6/6/2006) 

SEC. 37.11A. CIVIL ACTIONS. 

Whenever a landlord charges a tenant a rent 
which exceeds the limitations set forth in this 
Chapter, retaliates against a tenant for the ex- 
ercise of any rights under this Chapter, or at- 
tempts to prevent a tenant from acquiring any 
rights under this Chapter, the tenant may insti- 
tute a civil proceeding for money damages; pro- 
vided, however, that any monetary award for 
rent overpayments resulting from a rent in- 
crease which is null amd void pursuant to Section 
37.3(b)(5) shall be limited to a refund of rent 
overpayments made during the three-year pe- 
riod preceding the month of filing of the action, 
plus the period between the month of filing and 
the date of the court's order. In any case, calcu- 
lation of rent overpayments and re-setting of the 
lawful base rent shall be based on a determina- 
tion of the validity of all rent increases imposed 
since April 1, 1982, in accordance with Sections 
37.3(b)(5) and 37.3(a)(2) above. The prevailing 
party in any civil action brought under this 
Section 37. 11 A shall be entitled to recover rea- 
sonable attorneys' fees and costs. The remedy 
available under this Section shall be in addition 
to any other existing remedies which may be 
available to the tenant. (Added by Ord. 20-84, 
App. 1/19/84; amended by Ord. 162-93, App. 
5/28/93; Ord. 363-93, App. 11/18/93; Ord. 293-98, 
App. 10/2/98) 

SEC. 37.12. TRANSITIONAi:. 
PROVISIONS. 

This Section is enacted in order to assure the 
smooth transition to coverage under this Chap- 
ter of owner-occupied buildings containing four 
units or less, as a result of the repeal of the 
exemption for owner-occupied units. The provi- 
sions of this Section apply only to such units. The 
units are referred to as "newly covered units" in 



Supp. No. 4, January 2007 



Sec. 37.12. 



San Francisco - Administrative Code 



3696 



this Section. The term "effective date of cover- 
age" as used herein means the effective date of 
the repeal of the owner occupancy exemption. 

(a) The initial base rent for all newly cov- 
ered units shall be the rent that was in effect for 
the rental unit on May 1, 1994. If no rent was in 
effect for the newly covered unit on May 1, 1994, 
the initial base rent shall be the first rent in 
effect after that date. 

(b) All rents paid after May 1, 1994, in 
excess of the initial base rent under Section 
37.12(a), shall be refunded to the tenant no later 
than December 15, 1994. If the landlord fails to 
refund the excess rent by December 15, 1994, the 
tenant may deduct the amount of the refund 
from future rent payments, or bring a civil action 
under Section 37.11A, or exercise any other ex- 
isting remedies. All tenants residing in newly 
covered units are entitled to this refund, even if 
the tenant vacated before the effective date of 
coverage of the newly covered units. 

(c) As soon as practical after the effective 
date of coverage, the Board shall mail to the 
landlords of record of newly covered units a 
notice advising of the repeal of the exemption for 
owner-occupied buildings containing four units 
or less. The notice shall include information 
deemed appropriate by the Board to explain the 
requirements and effects of the change in the 
law. It shall be the responsibility of landlords to 
distribute a copy of said notice to all newly 
covered units within 15 days of the date the 
Board mails such notice to landlords. Distribu- 
tion shall be by mail properly addressed to a 
tenant of the newly covered unit, or by personal 
delivery to a tenant of the newly covered unit, or 
by placing said notice under the door of the 
primary entrance to the newly covered unit. 
(Added by Proposition I, 11/8/94; amended by 
Ord. 88-95, App. 4/7/95) 

SEC. 37.13. KEYS. 

(a) A landlord shall provide a minimum of 
one key or key-set per rental unit for each adult 
occupant, without charge. 



(b) Additional Keys/Key-Sets. A tenant 
may request keys/key-sets in addition to those 
provided pursuant to Section 37.13(a), for his or 
her convenience. Requested additional keys/key- 
sets must be provided within fourteen (14) days 
of the tenant's written request stating the rea- 
son(s), unless the landlord timely denies the 
request in writing as provided in Section 
37.13(b)(2). Examples of tenant reasons for re- 
ceiving additional keys/key-sets include, but are 
not limited to: admitting a service provider, 
delivery person, houseguest, or relative. All keys 
are issued for the duration of a tenancy to be 
returned upon vacating the unit. 

(1) When providing requested additional 
keys/key-sets to a tenant, the landlord may charge 
only for the documented cost of replicating the 
additional keys/key-sets, which cost shall be paid 
by the tenant upon delivery of the requested 
additional keys/key-sets. Additional keys/key- 
sets shall be provided without requiring any 
other cost, fees, deposits, or terms or conditions 
of any kind whatsoever. 

(2) The landlord may deny the request for 
additional keys/key-sets only for good reason, 
such as unlawful occupancy in the tenant's unit 
or the tenant's pattern of lease violation. Any 
landlord denial must be provided to the tenant in 
writing, stating specific reasons for the denial, 
within fourteen (14) days of the written request. 

(3) A tenant may file a petition with the 
Board to decide a disputed request for additional 
keys or key-sets which may constitute a substan- 
tial decrease in housing services, and/or to de- 
cide a disagreement concerning landlord charges 
or deposits (Section 37.13(b)(1)). A disputed re- 
quest includes a failure to respond within four- 
teen days (Section 37.13(b)), a disagreement con- 
cerning landlord terms and conditions (Section 
37.13(b)(1)), and a denial (Section 37.13(b)(2)). 

(A) The Board through its Administrative 
Law Judges shall conduct a hearing in order to 
decide the petition. 

(B) The decision of the Administrative Law 
Judge shall be final unless the Board vacates the 
decision on appeal. 



Supp. No. 4, January 2007 



3697 



Residential Rent Stabilization and Arbitration Ordinance 



Sec. 37.15. 



(C) Either party may file an appeal of the 
Administrative Law Judge's decision with the 
Board. Such appeals are governed by Section 
37.8(f). 

(4) Unreasonable denial of additional keys/ 
key-sets requested under this Section 37.13(b), 
or failure to respond to the tenant's written 
request within fourteen days by providing either 
the keys/key-sets or a written denial as provided 
by Sections 37.13(b) and (b)(2), or imposition of 
terms or conditions prohibited by Section 
37.13(b)(1), constitutes a substantial decrease in 
housing services for which the Administrative 
Law Judge may order a corresponding reduction 
in rent. (Added by Ord. 34-04, File No. 031879, 
App. 3/19/2004; amended by Ord. 66-05, File No. 
041688, App. 4/15/2005) (Former Sec. 37.13 added 
by Ord. 62-02, File No. 020343, App. 5/3/2002; 
renumbered Sec. 37.14 by Ord. 34-04) 

SEC. 37.14A. HEARINGS AND 
REMEDIES FOR VIOLATION OF 
RESIDENTIAL HOTEL VISITOR 
POLICIES. 

(a) Upon receipt of a petition from a current 
or former occupant of a residential hotel alleging 
violation of the provisions of Administrative Code 
Chapter 41D, including allegation of violation of 
the Uniform Visitor Policy or any Supplemental 
Visitor Policy, the Board through its Administra- 
tive Law Judges shall conduct a hearing in order 
to decide the petition. This decision may require 
a determination as to whether a residential 
hotel's policies and procedures are consistent 
with the Uniform Visitor Policy and any ap- 
proved Supplemental Policies, and in compliance 
with Administrative Code Chapter 4 ID. 

(b) Upon an Administrative Law Judge's 
findings of fact and decision that the operator, 
employee or agent of a residential hotel has 
violated the Uniform Visitor Policy or any ap- 
proved Supplemental Visitor Policy or any other 
provision of Chapter 4 ID, the Administrative 
Law Judge may conclude that the occupant has 
suffered a diminution in housing services and 
order a corresponding reduction in rent. 



(c) The decision of the Administrative Law 
Judge shall be final unless the Board vEicates the 
decision on appeal. 

(d) Either party may file an appeal of the 
Administrative Law Judge's decision with the 
Board. Such appeals are governed by Section 
37.8(f). (Ord. 34-04, File No. 031879, App. 3/19/ 
2004; Ord. 73-06, File No. 060188, App. 4/20/ 
2006) (Formerly Sec. 37.13; added by Ord. 62-02, 
File No. 020343, App. 5/3/2002; renumbered by 
Ord. 34-04, File No. 031879, App. 3/19/2004) 

SEC. 37.14B. HEiMlING, RESIDENTIAL 
HOTEL MAIL RECEPTACLES. 

(a) Upon receipt of a petition from a current 
or former permanent resident of a residential 
hotel alleging violation of the provisions of Ad- 
ministrative Code Chapter 41E, the Board through 
its Administrative Law Judges shall conduct a 
hearing in order to decide the petition. This 
decision may require a determination as to 
whether the petitioner is permanent resident. 

(b) Upon an Administrative Law Judge's 
findings of fact and decision that the operator of 
a residential hotel has violated the requirement 
to install a United States Postal Service-ap- 
proved mail receptacle for receipt of mail deliv- 
ered by the United States Postal Service, the 
Administrative Law Judge may conclude that 
the resident has suffered a diminution in hous- 
ing services and order a corresponding reduction 
in rent. 

(c) The decision of the Administrative Law 
Judge shall be final unless the Board vacates the 
decision on appeal. 

(d) Either party may file an appeal of the 
Administrative Law Judge's decision with the 
Board. Such appeals are governed by Section 
37.8(f). (Added by Ord. 73-06, File No. 060188, 
App. 4/20/2006) 

SEC. 37.15. SEVERABILITi. 

If any provision or clause of this Chapter or 
the application thereof to any person or circum- 
stance is held to be unconstitutional or to be 
otherwise invalid by any court of competent 
jurisdiction, such invalidity shall not affect other 



Supp. No. 4, January 2007 



Sec. 37.15. San Francisco -Administrative Code 3698 

Chapter provisions, and clauses of this Chapter 
are declared to be severable. (Formerly Sec. 
37.14; amended by Ord. 20-84, App. 1/19/84; 
amended by Proposition I, 11/8/94; Ord. 62-02, 
File No. 020343, App. 5/3/2002; renumbered by 
Ord. 34-04, File No. 031879, App. 3/19/2004) 



[The next page is 3717] Supp. No. 4, January 2007 



CHAPTER 37A; RENT STABILIZATION AND ARBITRATION FEE 



Sec. 37A.1. Scope. 

Sec. 37A.2. Findings. 

Sec. 37A.3. Purpose. 

Sec. 37A.4. Imposition of the Fee. 

Sec. 37A.5. Residential Rent Stabilization 

and Arbitration Fund. 
Sec. 37A.6. Recovery of the Fee, 

Limitations. 
Sec. 37A.7. Rules and Regulations. 
Sec. 37A.8. Manner of Giving Notice. 
Sec. 37A.9. Severability. 

SEC. 37A.1. SCOPE. 

This Chapter is applicable to all residential 
units in the City and County of San Francisco, 
including residential units which are exempt 
from the rent increase limitation provisions (but 
not other provisions) of Chapter 37 pursuant to 
the Costa-Hawkins Rental Housing Act (Civil 
Code §§ 1954.50. et seq.) and/or San Francisco 
Administrative Code Section 37.3(d). For pur- 
poses of this Chapter, "residential units" are 
dwelling units and guest rooms as those terms 
are defined in Sections 400 and 401 of the San 
Francisco Housing Code. The term shall not 
include: 

(a) Guest rooms exempted or excluded from 
regulation under Chapter 41 of this Code; 

(b) Dwelling units in nonprofit cooperatives 
owned, occupied and controlled by a majority of 
the residents or dwelling units solely owned by a 
nonprofit piiblic benefit corporation governed by 
a board of directors the majority of which are 
residents of the dwelling units and where it is 
required in the corporate by-laws that rent in- 
creases be approved by a majority of the resi- 
dents; 

(c) Housing accommodations in any hospi- 
tal, convent, monastery, extended care facility, 
asylum, residential care or adult day health care 
facility for the elderly which must be operated 
pursuant to a license issued by the California 



Department of Social Services, as required by 
California Health and Safety Chapters 3.2 and 
3.3, or in dormitories owned and operated by an 
institution of higher education, a high school, or 
an elementary school; 

(d) Dwelling units whose rents are con- 
trolled or regulated by any government unit, 
agency or authority, excepting those units which 
are subject to the jurisdiction of the Residential 
Rent Stabilization and Arbitration Board. How- 
ever, Section 8 certificate, voucher and related 
programs administered by the San Francisco 
Housing Authority, which are subject in whole or 
part to the jurisdiction of the Residential Rent 
Stabilization and Arbitration Board shall remain 
exempt from the fee; 

(e) Any dwelling unit for which the owner 
has on file with the Assessor a current 
homeowner's exemption; 

(f) Any dwelling unit which is occupied by 
an owner of record on either a full-time or 
part-time basis and which is not rented at any 
time, provided that the owner file with the Tax 
Collector an affidavit so stating; 

(g) Dwelling units located in a structure for 
which a certificate of final completion and occu- 
pancy was first issued by the Bureau of Building 
Inspection after June 13, 1979, except that any 
such units shall be subject to this Chapter 37 A if 
so designated in a development agreement en- 
tered into by the City under Chapter 56 of the 
San Francisco Administrative Code; 

(h) Dwelling units in a building which, after 
June 13, 1979, has undergone substantial reha- 
bilitation as that term is defined in Chapter 37 of 
this Code. (Added by Ord. 278-89, App. 8/2/89; 
amended by Ord. 291-90, App. 8/1/90; Ord. 211- 
95, App. 6/30/95; Ord. 178-99, File No. 990818, 
App. 6/25/99; Ord. 116-00, File No. 991315, App. 
6/2/2000; Ord. 92-07, File No. 061217, App. 4/27/ 
2007) 



3717 



Supp. No. 7, April 2007 



Sec. 37A.2. 



San Francisco - Administrative Code 



3718 



SEC. 37A.2. FINDINGS. 

The Board of Supervisors hereby finds: 

(a) In Section 37.1 of this Code, the Board of 
Supervisors found that there was a shortage of 
decent, safe and sanitary housing in the City and 
County of San Francisco resulting in a critically 
low vacancy factor. The Board further found that 
rent regulation was necessary in order to allevi- 
ate the ill effects of the City's housing shortage to 
meet the need for affordable housing, and to 
advance the City's housing policies. The Board 
now hereby finds that this housing shortage still 
persists and that rent regulation continues to be 
a necessary and effective means of mitigating 
this condition. 

(b) By Ordinance No. 276-79, adopted June 
12, 1979, the Board of Supervisors enacted the 
Residential Rent Stabilization and Arbitration 
Ordinance ("Rent Ordinance," Chapter 37, San 
Francisco Administrative Code) to regulate resi- 
dential rents in San Francisco. The Ordinance 
created the Residential Rent Stabilization and 
Arbitration Board ("Rent Board," Sections 37.1(a), 
(b) and 37.4) to administer and enforce the Rent 
Ordinance and thereby safeguard tenants from 
excessive increases while at the same time as- 
sure landlords fair and adequate rents. The Rent 
Board benefits both landlords and tenants by 
providing for the orderly and efficient adminis- 
tration of the Rent Ordinance and by protecting 
tenants from unreasonable rent increases and 
displacement while assuring that landlords re- 
ceive fair rents consistent with the Ordinance. 

(c) It is fair and reasonable that the costs of 
administering and enforcing the Rent Ordinance 
through the Rent Board should be equitably 
distributed among the City's residential units. 

Therefore, the Board finds that the owner of 
each residential unit as defined in Section 37A.1 
above shall be required to pay an annual Rent 
Stabilization and Arbitration fee for each unit. 

(d) The fee for each residential unit shall 
equal the projected annual cost of funding the 
Rent Board plus related administrative costs 
pursuant to Section 10.194 of this Code includ- 
ing, but not limited to, the Tax Collector and 
Controller, divided by the total number of resi- 



dential units estimated to pay the fee minus any 
balance remaining in the fund set forth in Sec- 
tion 10.117-88 of this Code; provided, however, 
that in calculating the fee, the Controller shall 
round up any fraction of a dollar to the next 
whole dollar. For the purposes of this calculation, 
a guest room shall be counted as one-half of a 
residential unit and shall be charged half the fee. 
The Assessor and the Director of the Department 
of Building Inspection shall release to the Infor- 
mation Services Division (ISD) of the Depart- 
ment of Telecommunications and Information 
Services (DTIS) by June 1st information neces- 
sary for compilation of the billing list. The Con- 
troller shall compile the list, determine the total 
number of residential units and calculate the fee 
by July 31st. The fee shall be recalculated on 
July 31st each year. 

(e) The fee herein is for regulatory purposes 
only. It is not designed or intended for revenue 
purposes. Any surplus collected in a given year 
will reduce the fee in the next fiscal year. (Added 
by Ord. 278-89, App. 8/2/89; amended by Ord. 
291-90, App. 8/1/90; Ord. 354-90, App. 10/17/90; 
Ord. 186-93, App. 6/11/93; Ord. 178-99, File No. 
990818, App. 6/25/99; Ord. 215-00, File No. 001264, 
App. 9/8/2000; Ord. 161-02, File No. 020471, 
App. 7/17/2002; Ord. 170-04, File No. 040745, 
App. 7/22/2004) 

SEC. 37A.3. PURPOSE. 

The purpose of this ordinance is to require 
those who rely upon and/or benefit from the Rent 
Board's administration and enforcement of the 
Rent Ordinance to pay a fee which is directly 
related to the financial burden placed upon the 
City in carr3dng out the Rent Board's functions 
and duties. (Added by Ord. 278-89, App. 8/2/89) 

SEC. 37A.4. IMPOSITION OF THE FEE. 

The owner of each residential unit in San 
Francisco shall pay annually to the City and 
County of San Francisco a Residential Rent 
Stabilization and Arbitration fee to be calculated 
by the Controller as provided in Section 37A.2(d) 
above. The Tax Collector shall bill the fee to the 
owners of all residential units on the property 
tax bill. All laws applicable to the collection and 



Supp. No. 7, April 2007 



3719 



Rent Stabilization and Arbitration Fee 



Sec. 37A.8. 



enforcement of ad valorem property taxes shall 
be applicable to the collection and enforcement of 
the Residential Rent Stabilization and Arbitra- 
tion fee, except that any lien arising from non- 
payment of the fee shall have the force, effect 
and priority of a judgment lien. (Added by Ord. 
278-89, App. 8/2/89; amended by Ord. 287-95, 
App. 9/1/95; Ord. 322-00, File No. 001917, App. 
12/28/2000) 
Cross reference: 

The actual annual residential rent control fee per 
unit shall be calculated pursuant to Administrative 
Code Section 37A.2., in conformance with Administra- 
tive Code Sections 10.117-88 and 10.194. 

SEC. 37A.5. RESIDENTIAL RENT 
STABILIZATION AND ARBITRATION 
FUND. 

All fees collected under this Chapter shall be 
deposited in the Residential Rent Stabilization 
and Arbitration Fund as provided in Chapter 10, 
Section 10.117-88 of the San Francisco Adminis- 
trative Code. All funds so collected shall be used 
solely for the purpose of funding the Rent Board 
plus related administrative costs pursuant to 
Section 10.194 of this Code including, but not 
limited to, the Tax Collector and Controller. 
(Added by Ord. 278-89, App. 8/2/89) 

SEC. 37A.(>. RECOVERY OF THE FEE, 
LIMITATIONS. 

The owner may seek recovery of the fee from 
the tenant(s) in occupancy of each residential 
unit on November 1st, up to a maximum of 50% 
of the annual fee for each unit, as follows: 

(a) An owner seeking recovery of the fee 
shall deduct it from the next interest pajnnent 
owed on the tenant's security deposit pursuant 
to Chapter 49 of this Code, except that where the 
interest has been paid annually the owner may 
bill the tenant directly as provided in subsection 
37A.6(c); or 

(b) When the fee is not collected during the 
year in which the owner is first entitled to it, the 
owner may bank the fee and collect it in a future 
year. Only those fees that become due after the 
effective date of this Ordinance may be banked. 
A banked fee may only be collected as a deduc- 



tion against security deposit interest due the 
tenant, except that where no interest or insuffi- 
cient interest exists (due to no deposit or low 
amount of deposit) the owner may bill for any 
balance owing as provided in subsection 37A.6(c). 
The billing statement must specifically show the 
fee amount owed by the tenant for each year, and 
the amount of interest due the tenant (if any) for 
each year owing. 

(c) To the extent provided in subsections 
37A.6(a) and (b), the owner may bill the tenant 
directly for the fee. The bill shall state the 
amount for that unit, that the purpose of the fee 
is to fund the Rent Board and related adminis- 
traitive costs under Chapter 37A of the San 
Francisco Administrative Code, and that the fee 
is due and payable v,^ithin 30 days of the date of 
the bill. 

The owner remains liable for full peiyment of 
the fee to the Tax Collector whether or not the 
owner seeks any recovery under one of the above 
methods or in fact does recover any portion from 
the tenant. (Added by Ord. 278-89, App. 8/2/89; 
amended by Ord. 291-90, App. 8/1/90; Ord. 178- 
99, File No. 990818, App. 6/25/99; Ord. 215-00, 
File No. 001264, App. 9/8/2000; Ord. 161-02, File 
No. 020471, App. 7/17/2002; Ord. 170-04, File 
No. 040745, App. 7/22/2004) 

SEC. 37A.7. RULES AND REGUI^^TIONS. 

The Tax Collector may adopt such rules, 
regulations and administrative procedures as he 
or she deems necessary to implement this Chap- 
ter. (Added by Ord. 278-89, App. 8/2/89) 



SEC. 37A.8. 
NOTICE. 



MANNER OF GIVING 



Any notice required to be given herein by the 
Tax Collector to an owner shall be sufficiently 
given or served upon the owner for all purposes if 
personally served upon the owner or if deposited, 
postage prepaid, in a post office letter box ad- 
dressed in the name of the owner at the official 
address of the owner maintained by the Tax 
Collector for the mailing of property tax bills. 
(Added by Ord. 278-89, App. 8/2/89) 



Supp. No. 7, April 2007 



Sec. 37A.9. San Francisco - Administrative Code 3720 

SEC. 37A.9. SEVERABILITY. 

The provisions of this Chapter shall not ap- 
ply to any person, association, corporation or to 
any property as to whom or which it is beyond 
the power of the City and County of San Fran- 
cisco to impose the fee herein provided. If any 
sentence, clause, section or part of this ordi- 
nance, or any fee imposed upon any person or 
entity is found to be unconstitutional, illegal or 
invalid, such unconstitutionality, illegality, or 
invalidity shall affect only such clause, sentence, 
section or part of this ordinance, or person or 
entity, and shall not affect or impair any of the 
remaining provisions, sentences, clauses, sec- 
tions or other parts of this ordinance, or its effect 
on other persons or entities. It is hereby declared 
to be the intention of the Board of Supervisors 
that this ordinance would have been adopted 
had such unconstitutional, illegal or invalid sen- 
tence, clause, section or part of this ordinance 
not been included herein, or had such person or 
entity been expressly exempted from the appli- 
cation of this ordinance. To this end the provi- 
sions of this Chapter are severable. (Added by 
Ord. 278-89, App. 8/2/89) 



[The next page is 3729] Supp. No. 7, April 2007 



CHAPTER 38: TRANSIT IMPACT DEVELOPMENT FEE 



Sec. 38.1. Definitions. 

Sec. 38.2. Findings. 

Sec. 38.3. Imposition of Transit Impact 

Development Fee. 

Sec. 38.3-1. Imposition of Office Space 
Development Fee. 

Sec. 38.4. Transit Impact Development 

Fee Schedule. 

Sec. 38.5. Setting of TIDF. 

Sec. 38.6. Credits. 

Sec. 38.7. Review of Fee Schedule. 

Sec. 38.8. Use of Proceeds from Transit 

Impact Development Fee. 

Sec. 38.9. Rules and Regulations. 

Sec. 38.10. Nonpajrment, Recordation of 
Notice of Fee and Notice of 
Delinquency, Additional 
Request; Notice of Assessment 
of Interest, and Institution of 
Lien Proceedings. 

Sec. 38.11. Lien Proceedings; Notice. 

Sec. 38.12. Manner of Giving Notices. 

Sec. 38.13. Charitable Exemptions. 

Sec. 38.14. Severability. 

SEC. 38.1. DEFINITIONS. 

For the purposes of this Chapter, the follow- 
ing definitions shall apply: 

A. Accessory Use. A related minor use 
which is either necessary to the operation or 
enjoyment of a lawful principal use or condi- 
tional use, or is appropriate, incidental and sub- 
ordinate to any such use and is located on the 
same lot as the principal or conditional use. 

B. Base Service Standard. The relation- 
ship between revenue service hours offered by 
the Municipal Railway and the number of auto- 
mobile and transit trips estimated to be gener- 
ated by certain non-residential uses, expressed 
as a ratio where the numerator equals the aver- 
age daily revenue service hours offered by MUNI, 



and the denominator equals the daily automo- 
bile and transit trips generated by non-residen- 
tial land uses as estimated by the TIDF Study or 
updated under Section 38.7 of this Chapter. 

C. Base Service Standard Fee Rate. The 

transit impact development fee that would allow 
the City to recover the estimated costs incurred 
by the Municipal Railway to meet the demand 
for public transit resulting from new develop- 
ment in the economic activity categories for 
which the fee is charged, after deducting govern- 
ment grants, fare revenue, and costs for non- 
vehicle maintenance and general administra- 
tion. 

D. Board. The Board of Supervisors of the 
City and County of San Francisco. 

E. Certificate of Final Completion and 

Occupancy. A certificate of final completion and 
occupancy issued by any authorized entity or 
official of the City, including the Director of the 
Department of Building Inspection, under the 
Building Code. 

F. City. The City and County of San Fran- 
cisco. 



G. 
TIDF 



Covered Use. Any use subject to the 



H. Cultural/Institution/Education (CIE). 

An economic activity category that includes, but 
is not limited to, schools, as defined in subsec- 
tions (g), (h), and (i) of Section 209.3 of the 
Planning Code and subsections (f) — (i) of Section 
217 of the Planning Code; child care facilities, as 
defined in subsections (e) and (f) of Section 209.3 
of the Planning Code and subsection (e) of Sec- 
tion 217 of the Planning Code; museums and 
zoos; and community facilities, as defined in 
Section 209.4 of the Planning Code and subsec- 
tions (a) — (c) of Section 221 of the Planning 
Code. 

I. Director. The Director of Transportation 
of the MTA, or his or her designee. 



3729 



Supp. No. 9, June 2007 



Sec. 38.1. 



San Francisco - Administrative Code 



3730 



J. Economic Activity Category. One of 

the following six categories of nonresidential 
uses: Cultural/Institution/Education (CIE), Man- 
agement, Information and Professional Services 
(MIPS), Medical and Health Services, Production/ 
Distribution/Repair (PDR), Retail/Entertain- 
ment, and Visitor Services. 

K. Gross Floor Area. The total area of 
each floor within the building's exterior walls, as 
defined in Section 102.9 of the San Francisco 
Planning Code, except that for purposes of deter- 
mining the applicability of the TIDE, the exclu- 
sion from this definition set forth in Section 
102.9(b)(12) of that Code shall not apply 

L. Gross Square Feet of Use. The total 
square feet of gross floor area in a building 
and/or space within or adjacent to a structure 
devoted to all covered uses, including any com- 
mon areas exclusively serving such uses and not 
serving residential uses. Where a structure con- 
tains more than one use, areas common to two or 
more uses, such as lobbies, stairs, elevators, 
restrooms, and other ancillary space included in 
gross floor area that are not exclusively assigned 
to one use shall be apportioned among the two or 
more uses in accordance with the relative amounts 
of gross floor area, excluding such space, in the 
structure or on any floor thereof directly assign- 
able to each use. 

M. Management, Information and Pro- 
fessional Services (MIPS). An economic activ- 
ity category that includes, but is not limited to, 
office use as defined in Section 313.1(35) of the 
Planning Code; medical offices and clinics, as 
defined in Section 890.114 of the Planning Code; 
and business services, as defined in Section 
890.111 of the Planning Code. 

N. Medical and Health Services. An eco- 
nomic activity category that includes, but is, not 
limited to, those non-residential uses defined in 
Sections 209.3(a) and 217(a) of the Planning 
Code; animal services, as defined in subsections 
(a) and (b) of Section 224 of the Planning Code; 
and social and charitable services, as defined in 
subsection (d) of Section 209.3 of the Planning 
Code and subsection (d) of Section 217 of the 
Planning Code. 



O. Municipal Railway; MUNI. The public 
transit system owned by City and under the 
jurisdiction of the Municipal Transportation 
Agency 

P. Municipal Transportation Agency; 

MTA. The agency of City created under Article 
8A of the San Francisco Charter. 

Q. Municipal Transportation Agency 
Board of Directors; MTA Board. The govern- 
ing board of the MTA. 

R. New Development. Any new construc- 
tion, or addition to or conversion of an existing 
structure under a building or site permit issued 
on or after September 4, 2004, that results in 
3,000 gross square feet or more of a covered use. 
In the case of mixed use development that in- 
cludes residential development, the term "new 
development" shall refer to only the non-residen- 
tial portion of such development. "Existing struc- 
ture" shall include a structure for which a spon- 
sor already paid a fee under the prior TIDE 
ordinance, as well as a structure for which no 
TIDE was paid. 

S. Office Space Development Fee; OSDF. 

A fee imposed under Section 38.3-1 of this Chap- 
ter, 

T. Planning Code. The Planning Code of 
the City and County of San Francisco, as it may 
be amended from time to time. 

U. Production/Distribution/Repair 

(PDR). An economic activity category that in- 
cludes, but is not limited to, manufacturing and 
processing, as defined in Section 226 of the 
Planning Code; those uses listed in Section 222 
of the Planning Code; automotive services, as 
defined in Section 223(a) — (k) of the Planning 
Code; arts activities and spaces, as defined in 
Section 102.2 of the Planning Code; and research 
and development, as defined in Section 313.1(42) 
of the Planning Code. 

V. Residential. Any type of use containing 
dwellings as defined in Section 209.1 of the 
Planning Code or containing group housing as 
defined in Section 209.2(a) — (c) of the Planning 
Code. 



Supp. No. 9, June 2007 



3731 



Transit Impact Development Fee 



Sec. 38.2. 



W. Retail/Entertainment. An economic ac- 
tivity category that includes, but is not limited 
to, retail use, as defined in Section 218 of the 
Planning Code; entertainment use, as defined in 
Section 313.1(15) of the Planning Code; massage 
establishments, as defined in Section 218.1 of 
the Planning Code; laundering, and cleaning and 
pressing, as defined in Section 220 of the Plan- 
ning Code. 

X. Revenue Service Hours. The number 
of hours that the Municipal Railway provides 
service to the public with its entire fleet of buses, 
light rail (including streetcars), and cable cars. 

Y. Sponsor. An applicant seeking approval 
for construction of new development subject to 
this chapter, such applicant's successors and 
assigns, and/or any person or entity that controls 
or is under common control with such applicant. 

Z. TIDF Study. The study commissioned 
by the San Francisco Planning Department and 
performed by Nelson/Nygaard Associates en- 
titled "Transit Impact Development Fee Analysis — 
Final Report," dated May 2001, including all the 
Technical Memoranda supporting the Final Re- 
port and the Nelson/Nygaard update materials 
contained in Board of Supervisors File No. 040141. 

AA. Transit Impact Development Fee; 
TIDF. The development fee that is the subject of 
this Chapter. 

BB. Treasurer. Treasurer of the City and 
County of San Francisco. 

CC . Trip Generation Rate. The total num- 
ber of automobile and Municipal Railway trips 
generated for each 1,000 square feet of develop- 
ment in a particular economic activity category 
as established in the TIDF Study, or pursuant to 
the five-year review process established in Sec- 
tion 38.7 of this Chapter. 

DD. Use. The purpose for which land or a 
structure, or both, are legally designed, con- 
structed, arranged or intended, or for which they 
are legally occupied or maintained, let or leased. 

EE. Visitor Services. An economic activity 
category that includes, but is not limited to, hotel 
use, as defined in Section 313.1(18) of the Plan- 
ning Code; motel use, as defined in subsections 
(c) and (d) of Section 216 of the Planning Code; 



and time-share projects, as defined in Section 
11003.5(a) of the Califoinia Business and Profes- 
sions Code. (Added by Ord. 199-04, File No. 
040141, App. 8/5/2004) (Former Sec. 38.1 amended 
by Ord. 205-86, App. 6/6/86; Ord. 76-03, File No. 
020592, App. 5/2/2003; repealed by Ord. 199-04; 
Ord. 144-07, File No. 070133, App. 6/29/2007) 

SEC. 38.2. FINDINGS. 

A. In 1981, the City enacted an ordinance 
imposing a Transit Impact Development Fee 
("TIDF") on new office development in the Down- 
town area of San Francisco. The ordinance es- 
tablished a rate of $5.00 for each square foot of 
new office development. The TI DF was based on 
studies showing that the development of new 
office uses places a burden on the Municipal 
Railway, especially in the downtown area of San 
Francisco during commute hours, known as "peak 
periods." The TIDF was based on two cost analy- 
ses: one by the Finance Bureau of the City's 
former Public Utilities Commission, performed 
in 1981, and one by the accounting firm of 
Touche-Ross, performed in March 1983 to defend 
a legal challenge to the TIDF. The studies showed 
that the cost per square foot of new office devel- 
opment to provide public transit service was 
$9.18 and $8.36, respectively The California 
Court of Appeal upheld the TIDF ordinance 
against legal challenges in Russ Bldg. Partner- 
ship V. City and County of San Francisco, 199 
Cal.App.3d 1496 (1987), reprinted as directed by 
the California Supreme Court in Russ Bldg. 
Partnership v. City and County of San Francisco, 
44 Cal.3d 839, 845-55 (1988). Among other things, 
the Court of Appeal found that the TIDF was a 
valid condition of development of real property, 
and not a special tax requiring voter approval. 
The Court also upheld the TIDF against equal 
protection and substantive due process chal- 
lenges. Additionally, the California Supreme Court 
upheld the constitutionality of the TIDF as ap- 
plied to development of new office uses approved 
before passage of the TIDF ordinance, vi^here the 
City had conditioned approval of the new devel- 
opment on the developer's payment of a contem- 
plated, but yet unknown, transit mitigation fee. 



Supp. No. 9, June 2007 



Sec. 38.2. 



San Francisco - Administrative Code 



3732 



B. In 2000, the City's Planning Depart- 
ment, with assistance from the Municipal Trans- 
portation Agency, commissioned a study of the 
TIDE The Planning Department issued a re- 
quest for proposals for a consultant to consider 
various issues involving the TIDF, including: (1) 
whether the TIDF should be expanded to include 
types of land uses in addition to offices; (2) 
whether the TIDF should be expanded geographi- 
cally beyond the Downtown area; (3) whether fee 
amounts should vary by geographic or land use 
categories; (4) what standards should be used for 
measuring the baseline performance of the Mu- 
nicipal Railway ("MUNI"); and (5) the developer 
fees that would be necessary to fund public 
transit to meet the additional demand resulting 
from new development. 

C. In 2001, the Planning Department se- 
lected Nelson/Nygaard Associates, a nationally 
recognized transportation consulting firm, to per- 
form the study Later in 2001, Nelson/Nygaard 
issued its final report ("TIDF Study"). Before 
issuing the TIDF Study, Nelson/Nygaard pre- 
pared several Technical Memoranda, which pro- 
vided detailed analyses of the methodology and 
assumptions used in the TIDF Study. 

D. The TIDF Study concluded that new 
non-residential uses in San Francisco will gen- 
erate demand for a substantial number of auto 
and transit trips by the year 2020. The TIDF 
Study confirmed that while new office construc- 
tion will have a substantial impact on MUNI 
services, new, development in a number of other 
land uses will also require MUNI to increase the 
number of revenue service hours. The TIDF 
Study recommended that the TIDF be extended 
to apply to most non-residential land uses. The 
TIDF Study found that certain types of new 
development generate very few daily trips and 
therefore may not appropriately be charged a 
new TIDF. 

E. The TIDF Study also determined that 
the need to expand MUNI services to accommo- 
date new development extends to all times of the 
day, not just peak periods, and therefore recom- 
mended that any measure of the existing level of 



service and additional service required by new 
development include service at all times of the 
day 

E The former TIDF Ordinance applied the 
fee to developments in the traditional "Down- 
town" area of the City The TIDF Study noted 
that since 1981, however, development has ex- 
panded out of the Downtown area of the City, 
and that such development has required MUNI 
to build transit infrastructure in areas outside of 
the boundary defined in the former TIDF Ordi- 
nance. 

G. To meet the increased demand for public 
transit projected by the TIDF Study, MUNI must 
build new infrastructure and add or adjust ser- 
vice. For example, MUNI's 2002 publication, "A 
Vision for Rapid Transit in San Francisco" ("Vi- 
sion Plan"), proposes transit projects along 12 
major corridors in San Francisco, covering all 
areas of the City. 

H. Even where employees and others drawn 
to new development use private transportation, 
their trips will increase the cost of maintaining 
MUNI's existing service level ("base service stan- 
dard") because increasing traffic congestion will 
result in slower travel speeds for MUNI and 
require MUNI to add more service hours to 
maintain its base service standard. Accordingly, 
new development will require MUNI to add 
service hours to maintain schedules and reliabil- 
ity that extends beyond the new riders seeking to 
use MUNI service. 

I. New development will directly and indi- 
rectly require MUNI to (a) maintain and expand 
service capacity through adding revenue service 
hours; (b) purchase, maintain and repair rolling 
stock; (c) install new lines; and (d) add service to 
existing lines. 

J. The TIDE Study recommended that the 
City enact an ordinance to impose transit impact 
fees that would allow MUNI to maintain its base 
service standard as new development occurs 
throughout the City. The proposed ordinance 
would require sponsors of new development in 
the City to pay a fee that is reasonably related to 
the financial burden imposed on MUNI by the 
new development. This financial burden is mea- 



Supp. No. 9, June 2007 



3733 



Transit Impact Development Fee 



Sec. 38.2. 



sured by the cost that will be incurred by MUNI 
to provide increased service to maintain the 
applicable base service standard over the life of 
such new development. 

K. The TIDF Study expressed the base ser- 
vice standard as a ratio in which the numerator 
is the number of hours that MUNI provides 
service to the public on its entire fleet of vehicles 
("revenue service hours"), and the denominator 
is the number of trips generated by all non- 
residential land uses. An increase in trips result- 
ing from new non-residential development will 
reduce the ratio of revenue service hours to 
overall trips generated by new development. To 
maintain the base service standard to accommo- 
date the new development, MUNI must increase 
revenue service hours. 

L. The TIDF Study developed a daily trip 
generation rate for each of six economic activity 
categories developed in the "Cit5rwide Land Use 
Study," prepared for the Planning Department in 
1998. The daily trip generation rate included 
automobile and public transit trips, but excluded 
non-motorized trips because such trips do not 
materially affect traffic congestion. The TIDF 
Study determined that the trip generation rates 
in each economic activity category do not vary 
geographically within the City. Therefore, the 
TIDF Study concluded that developer fee rates 
should not vary in different districts within the 
City. The trip generation rates contained in the 
TIDF Study represent the most reasonable rates 
available for the economic activity categories in 
the Study. 

M. Using data obtained from MUNI and 
the fiscal year 2000 National Transit Database, 
the TIDE Study calculated the base service stan- 
dard fee rEites for each of the six economic 
activity categories in the following way: 

(1) To calculate MUNI's total annual costs, 
the TIDF Study combined MUNI's fiscal year 
2000 operating costs with an average annual 
capital budget, estimated by averaging the prior 
five years of MUNI's capital expenditures. 



Average Annual Capital 
Costs 


$310,000,000 


Total Annual Costs 


$694,113,000 



(2) The Study calculated MUNI's net an- 
nual costs for fiscal year 2000 by subtracting fare 
box revenue and federal and state grant funds 
from MUNI's total costs. 



Total Annual Costs 


$694,113,000 


FY 2000 Fare Box Revenue 


($101,310,000) 


FY 2000 Federal/State Grant 
Funds 


($182,900,000) 


Net Annual Costs 


$409,903,000 



(3) The Study then determined MUNI's net 
annual cost per revenue service hour by dividing 
MUNI's net annual costs by MUNI's average 
daily revenue service hours, as reported to the 
National Transit Database. 





Average 






Daily 


Net i^lnnual 




Revenue 


Cost Per 


Net Annual 


Service 


Revenue 


Costs 


Hours 


Service Hour 


$409,903,000 


~ 8,436 


$48,600 



(4) The TIDF Study estimated the number 
of daily auto and transit trips within the City 
(9,035,282) by using trip generation rates and 
2000 employment data supplied by the Planning 
Department. By dividing MUNI's average daily 
revenue service hours (8,436) by the estimated 
daily auto and transit trips within the City 
(9,035,282), the TIDF Study determined that 
MUNI provided approximately 0.9336 service 
hours for every 1,000 transit and auto trips. The 
TIDF Study multiplied the net annual cost per 
revenue service hour by 0.9336 to determine a 
net annual cost per trip. 



Net Annual 


Revenue 




Cost Per 


Service 


Net Annual 


Revenue 


Hours Per 


Cost Per 


Service Hour 


1,000 Trips 


Tt-ip 


$48,600 


X 0.9336 


$45.37 



FY 2000 Operating Costs $384,113,000 



(5) The Study multiplied the net annual 
cost per trip by an adjusted daily trip rate per 
economic activity category to calculate a net 



Supp. No. 9, June 2007 



Sec. 38.2. 



San Francisco - Administrative Code 



3734 



annual cost per gross square foot (gsf) of new 
development for each economic activity category. 



The TIDF Study adjusted the daily trip rate to 
eliminate bicycle and pedestrian trips. 



Economic Activity 
Category 


Adjusted Daily Trip 
Rate Per 1,000 gsf 


Net Annual 
Cost Per Trip 


Net Annual Cost per 
gsf of Development 


Cultural/Institution/ 
Education 


42.3 


$45.37 


$1.92 


Management, Informa- 
tion and Professional 
Services 


15.1 


$45.37 


$0.68 


Medical and Health 
Services 


23.9 


$45.37 


$1.08 


Production/Distribution/ 
Repair 


9.6 


$45.37 


$0.44 


Retail/Entertainment 


166.8 


$45.37 


$7.57 


Visitor Services 


13.3 


$45.37 


$0.61 



(6) Finally, the Study multiplied the net 
annual cost per gross square foot of development 
for each economic activity category by a net 
present value factor of 20.69 (based on a U.S. 
transportation industry index inflation rate of 
2.05%, earning on an invested funds rate of 



6.14%, and a building life span of 45 years) to 
establish the base service standard rates for 
each economic activity category that would be 
necessary to pay for increased transit services 
for the 45-year useful life of a new development. 



Economic Activity 
Category 


Net Present 
Value Factor 


Net Annual Cost 

per gsf of 

Development 


Base Service 
Standard Rates 


Cultural/Institution/ 
Education 


20.69 


$1.92 


$39.67 


Management, Informa- 
tion and Professional 
Services 


20.69 


$0.68 


$14.17 


Medical and Health 
Services 


20.69 


$1.08 


$22.40 


Production/Distribution/ 
Repair 


20.69 


$0.44 


$9.04 


Retail/Entertainment 


20.69 


$7.57 


$156.61 


Visitor Services 


20.69 


$0.61 


$12.53 



Supp. No. 9, June 2007 



3735 



Transit Impact Development Fee 



Sec. 38.2. 



N. In 2004, MUNI updated the base service 
standard rates established in the TIDF Study 
with fiscal year 2003 data (the "updated base 
service standard rates"). To calculate the up- 
dated base service standard rates, MUNI modi- 
fied certain variables in the TIDF Study's for- 
mula to reflect current information, as follows. 

(1) Rather than using an estimated average 
annual capital budget (the methodology em- 
ployed in the TIDF Study), MUNI used its actual 
capital costs for fiscal years 1999-2003, as re- 
ported to the fiscal year 2003 National Transit 
Database, in determining the average annual 
capital costs. 



Operating Costs 


$449,283,888 


Average Capital Costs 


$192,468,200 


Total Costs 


$641,752,088 



(2) California Government Code Section 
65913.8 prohibits including costs for facility main- 
tenance and operations in a fee imposed on a 
developer for a public capital facility improve- 
ment. It is not clear whether this limitation 
applies to the TIDF To comply with Government 
Code Section 65913.8, if applicable, and to achieve 
a more conservative estimate of the recoverable 
costs, MUNI deducted its costs for non-vehicle 
(facility) maintenance and general administra- 
tion. MUNI could not separate general adminis- 
tration attributable to facility operations, so MUNI 
deducted 100% of the general administration 
costs for the entire department. Accordingly, the 
updated base service standard rates are even 
more consei-vative than may be required under 
Section 65913.8. 

(3) MUNI applied its updated assumptions 
to the TIDP" Study's methodology by deducting 
non-vehicle maintenance and general adminis- 
tration (in addition to farebox revenues and 
grant funds) from its total costs to calculate its 
annual net costs: 



Total Annual Costs FY 2003 


$641,752,088 


Farebox Revenue FY 2003 


($97,779,333) 


Federal/State Grant Funds 
FY 2003 


($89,445,000) 



Non- Vehicle Maintenance FY 
2003 


($34,173,560) 


General Administration FY 
2003 


($92,197,116) 


Net Annual Costs FY 2003 


$328,157,079 



(4) To determine the net annual cost per 
revenue service hour, MUNI used the average 
daily revenue service hours for Fiscal Year 2003 
(10,062), as reported to the National Transit 
Database: 



Net Annual 
Costs 



$328,157,079 



Average 
Daily 

Revenue 

Service 

Hours 



H- 10,062 



Net i^nual 

Cost Per 

Revenue 

Service Hour 



$32,614 



(5) MUNI then calculated the net annual 
cost per trip by multipljdng the net annual cost 
per revenue service hour by the number of rev- 
enue service hours per 1,000 trips: 





Revenue 




Net Annual 


Service 




Cost Per 


Hours 


Net iVnnual 


Revenue 


Per 1,000 


Cost Per 


Service Hour 


Trips 


TWp 


$32,614 


X 1.1136 


$36.32 



(6) MUNI multiplied the net annual cost 
per trip by the adjusted daily trip rate for each 
economic activity category to arrive at a net 
annual cost per gross square foot of new devel- 
opment for each category: 



Supp. No. 9, June 2007 



Sec. 38.2. 



San Francisco - Administrative Code 



3736 



Economic Activity 
Category 


Adjusted Daily Trip 
Rate Per 1,000 gsf 


Net Updated Annual 
Cost Per Trip 


Net Updated Annual 

Cost per gsf of 

Development 


Cultural/Institution/ 
Education 


42.3 


$36.32 


$1.54 


Management, Informa- 
tion and Professional 
Services 


15.1 


$36.32 


$0.55 


Medical and Health 
Services 


23.9 


$36.32 


$0.87 


Production/Distribution/ 
Repair 


9.6 


$36.32 


$0.35 


Retail/Entertainment 


166.8 


$36.32 


$6.06 


Visitor Services 


13.3 


$36.32 


$0.48 



(7) MUNI also updated the net present value 
factor the TIDF Study used to calculate the 
updated base service standard rates by calculat- 
ing the lump sum amount needed to fund $1.00 
(in today's dollars) in annual costs over 45 years, 
increasing at a current inflation rate of 3.50% 
(the five-year Bay Area Consumer Price Index as 
calculated by the Association for Bay Area Gov- 
ernments), with the remaining fund balance 
invested at a current interest rate of 4.93% (the 
five-year average interest rate earned by the 



City's Treasurer's Department on pooled funds). 
Both the TIDF Study and MUNI used the inter- 
est rate earned by the City's Treasurer for the 
respective years. But MUNI elected to use the 
Bay Area Consumer Price Index rather than the 
U.S. Transportation Index on which the TIDF 
Study relied because the Bay Area index more 
accurately reflects the local inflation rate. The 
use of the different net present value factor 
yields the following updated base service stan- 
dard rates: 



Economic Activity 
Category 


Net Annual Cost per 
gsf of Development 


Net Present 
Value Factor 


Updated Base Service 
Standard Rates 


Cultural/Institution/ 
Education 


$1.54 


33.36 


$51.25 


Management, Informa- 
tion and Professional 
Services 


$0.55 


33.36 


$18.30 


Medical and Health 
Services 


$0.87 


33.36 


$28.96 


Production/Distribution/ 
Repair 


$0.35 


33.36 


$11.63 


Retail/Entertainment 


$6.06 


33.36 


$202.10 


Visitor Services 


$0.48 


33.36 


$16.11 



Supp. No. 9, June 2007 



3737 



Transit Impact Development Fee 



Sec. 38.3. 



O. In setting the TIDF rates, the City con- 
sidered the updated base service standard rates 
and input from a variety of stakeholders, includ- 
ing business groups, developers, and civic orga- 
nizations. The City set the TIDF rates well below 
the updated base service standard rates to re- 
duce the costs of the TIDF to sponsors of new 
developments, who are subject to other develop- 
ment fees imposed by the City, and to guarantee 
that the TIDF does not exceed the reasonable 
cost to fund the additional transit improvements 
necessitated by new development. The TIDF 
rates are as follows: 



Economic 
Activity 
Category 


Updated 

Base Service 

Standard 

Rates 


TIDF 
Schedule 

(from 
Sec. 38.4) 


Cultural/Insti- 

tution/Educa- 

tion 


$51.25 


$10.00 


Management, 
Information 
and Profes- 
sional Services 


$18.30 


$10.00 


Medical and 
Health Ser- 
vices 


$28.96 


$10.00 


Productiony' 

Distributioii/ 

Repair 


$11.63 


$8.00 


Retail/Enter- 
tainment 


$202.10 


$10.00 


Visitor Ser- 
vices 


$16.11 


$8.00 



P. Based on projected new development over 
the next 20 years, the TIDF will provide revenue 
to MUNI that is significantly below the costs 
that MUNI will incur to mitigate the transit 
impacts resulting from the new development. 

Q. The TIDF is the most practical and eq- 
uitable method of meeting a portion of the de- 
mand for additional Municipal Railway service 
and capital improvements for the City caused by 
new non-residential development. 



R. Based on the above findings, the City 
determines that the TIDF satisfies the require- 
ments of the Mitigation Fee Act, California Gov- 
ernment Code Section 66001, as follows: 

(1) The purpose of the fee is to meet a 
portion of the demand for additional Municipal 
Railway service and capital improvements for 
the City caused by new nonresidential develop- 
ment. 

(2) Funds from collection of the TIDF will 
be used to increase revenue service hours rea- 
sonably necessary to mitigate the impacts of new 
non-residential development on public transit 
and maintain the applicable base service stan- 
dard. 

(3) There is a reasonable relationship be- 
tween the proposed uses of the TIDF and the 
impact on transit of the new developments on 
which the TIDF will be imposed. 

(4) There is a reasonable relationship be- 
tween the types of new development on which 
the TIDF will be imposed and the need to fund 
public transit for the uses specified in Section 
38.8 of this ordinance. 

(5) There is a reasonable relationship be- 
tween the amount of the TIDF to be imposed on 
new developments and the impact on public 
transit from the new developments. (Added by 
Ord. 199-04, File No. 040141, App. 8/5/2004) 
(Former Sec. 38.2 amended by Ord. 224-84, App. 
5/15/84; repealed by Ord. 199-04) 

SEC. 38.3. IMPOSITION OF TRANSIT 
IMPACT DEVELOPMENT FEE. 

A. Subject to the exceptions set forth in 
subsections D and E below, each sponsor of a new 
development in the City shall pay to the City and 
deliver to the Treasurer upon issuance of any 
temporary certificate of occupancy, and as a 
condition precedent to issuance for such new 
development of any certificate of final comple- 
tion and occupancy, whichever occurs first, a 
TIDF The TIDF shall be calculated on the basis 
of the number of gross square feet of new devel- 
opment, multiplied by the square foot rate in 
effect at the time of pa5rment for each of the 
applicable economic activity categories within 



Supp. No. 9, June 2007 



Sec. 38.3. 



San Francisco - Administrative Code 



3738 



the new development, as provided in Section 
38.4 of this Chapter. An accessory use shall be 
charged at the same rate as the underlying use 
to which it is accessory. Whenever any new 
development or series of new developments cu- 
mulatively creates more than 3,000 gross square 
feet of covered use within a structure, the TIDF 
shall be imposed on every square foot of such 
covered use (including any portion that was part 
of prior new development below the 3,000 square 
foot threshold). 

B. No City official or agency, including the 
Department of Building Inspection ("DBI") and 
the Port of San Francisco, may issue a certificate 
of final completion and occupancy for any new 
development subject to the TIDF until it has 
received notification from the Treasurer that the 
TIDF in accordance with Section 38.4 of this 
Chapter has been paid. 

C. Except as provided in Sections 38.3(D) 
and (E) below, the TIDF shall be payable with 
respect to any new development in the City for 
which a building or site permit is issued on or 
after September 4, 2004. 

D. The TIDF shall not be payable on new 
development, or any portion thereof, for which a 
transit impact development fee has been paid, in 
full or in part, under the prior Transit Impact 
Development Fee Ordinance adopted in 1981 
(Ordinance No. 224-81; former Chapter 38 of this 
Administrative Code), except where (1) gross 
square feet of use is being added to the building; 
or (2) the TIDF rate for the new development is 
in an economic activity category with a higher 
fee rate than the rate set for MIPS, as set forth in 
Section 38.4. 

E. No TIDF shall be payable on the follow- 
ing types of new development. 

(1) New development on property owned 
(including beneficially owned) by the City, except 
for that portion of the new development that may 
be developed by a private sponsor and not in- 
tended to be occupied by the City or other agency 
or entity exempted under this Chapter, in which 
case the TIDF shall apply only to such non- 
exempted portion. New development on property 
owned by a private person or entity and leased to 



the City shall be subject to the fee, unless the 
City is the beneficial owner of such new develop- 
ment or unless such new development is other- 
wise exempted under this Section. 

(2) Any new development in Mission Bay 
North or South to the extent application of this 
Chapter would be inconsistent with the Mission 
Bay North Redevelopment Plan and Interagency 
Cooperation Agreement or the Mission Bay South 
Redevelopment Plan and Interagency Coopera- 
tion Agreement, as applicable. 

(3) New development located on property 
owned by the United States or any of its agencies 
to be used exclusively for governmental pur- 
poses. 

(4) New development located on property 
owned by the State of California or any of its 
agencies to be used exclusively for governmental 
purposes. 

(5) New development for which an applica- 
tion for environmental evaluation or an applica- 
tion for a categorical exemption has been filed 
prior to April 1, 2004, and for which a building 
permit or site permit is issued on or before 
September 4, 2008; provided however, that such 
new development may be subject to the OSDF 
under Section 38.3-1 of this Chapter. 

(6) The following types of new develop- 
ments: 

(a) Public facilities/utilities, as defined in 
Section 209.6 of the Planning Code; 

(b) Open recreation/horticulture, as defined 
in Section 209.5 of the Planning Code, including 
private noncommercial recreation open use, as 
referred to in Section 221(g) of the Planning 
Code; 

(c) Vehicle storage and access, as defined in 
Section 209.7 of the Planning Code; 

(d) Automotive services, as defined in Sec- 
tion 223(1)— (v) of the Planning Code; 

(e) Wholesaling, storage, distribution, and 
open-air handling of materials and equipment, 
as defined in Section 225 of the Planning Code; 

(f) Other Uses, as defined in Section 227(a) — 
(q) and (s) — (t) of the Planning Code; 



Supp. No. 9, June 2007 



3739 



Transit Impact Development Fee 



Sec. 38.3-1. 



In reviewing whether a development is sub- 
ject to the fee, the Director shall consider the 
project in its entirety. A sponsor may not seek 
multiple building permits to evade paying the 
TIDE 

F. The sponsor shall pay, or cause to be 
paid, the TIDF to the Treasurer on the earliest of 
the following dates: 

(1) The date when 50 percent of the net 
rentable area of the project has been occupied; 

(2) The date of issuance of the first tempo- 
rary permit of occupancy in the new develop- 
ment; 

G. Upon payraent of the fee in full to the 
Treasurer, and upon request of the sponsor, the 
Treasurer shall issue a certificate that the fee 
has been paid. The sponsor shall present such 
certification to DBI before the issuance of the 
final certificate of occupancy for the new devel- 
opment. DBI shall provide notice in writing to 
the Treasurer, the Planning Department, and 
MUNI at least five business days before issuing 
the final certificate of occupancy for any new 
development project. DBI may not issue a final 
certificate of occupancy for any new development 
until DBI has received notice from the Treasurer 
that the TIDF has been paid. (Added by Ord. 
199-04, File No. 040141, App. 8/5/2004) (Former 
Sec. 38.3 added by Ord. 224-81, App. 5/5/81; 
amended by Ord. 76-03, File No. 020592, App. 
5/2/2003; repealed by Ord. 199-04; Ord. 144-07, 
File No. 070133, App. 6/29/2007) 

SEC. 38.3-1. IMPOSITION OF OFFICE 
SPACE DEVELOPMENT FEE. 

(a) Definitions. For purposes of this Sec- 
tion, the following definitions apply: 

(1) Downtown Area. That portion of the 
City and County bounded by Van Ness Avenue as 
far north as Broadway, from Van Ness Avenue 
and Broadway easterly on Broadway to Sansome 
Street, then northerly on Sansome Street to the 
Embarcadero; then southeasterly on the Embar- 
cadero to Berry Street; then southwesterly on 
Berry Street to De Haro Street; then southerly 
on De Haro Street to Alameda Street; then 
westerly on Alameda Street to Bryant Street; 



then northerly on Biyant Street to Thirteenth 
Street; then westerly on Thirteenth Street to 
South Van Ness Avenue; then northerly to Van 
Ness Avenue. The downtown area includes all 
property which abuts upon any of or is within the 
area surrounded by the above enumerated bound- 
ary streets. 

(2) Gross Square Foot of Office Use. A 

square foot of floor space within a structure, 
whether or not within a room, to be occupied by, 
or primarily serving, office use. 

(3) Office Use.. Any structure or portion 
thereof intended for occupancy by business enti- 
ties which will primarily provide clericsd, profes- 
sional or business seirvices of the business entity, 
or which will primarily provide clerical, profes- 
sional or business services to other business 
entities or to the public, at that location. 

(b) Imposition of Fee. 

(1) New development in the Downtown Area 
that contains 3,000 or more gross square feet of 
office use for which an application for environ- 
mental evaluation or an application for a cat- 
egorical exemption has been filed prior to April 1, 
2004, and for which a building or site permit was 
issued on or after September 4, 2004, but prior to 
September 4, 2008, shall be subject to an office 
space development fee in accordance with this 
section. The office space development fee for 
each gross square foot of office use in new devel- 
opment in the Downtown Area shall be $5 per 
square foot. 

(2) Any office space development fee due 
under paragraph (b)(1) shall be due and payable 
in accordance with the procedures set forth in 
this chapter governing payment and collection of 
the TIDF, except that the amount of the fee shall 
be calculated based upon gross square feet of 
office use, rather thcin gross square feet of use. 

(c) Credits. In determining the number of 
gross square feet of office use to which the office 
space development fee applies, the director shall 
provide for the following credits: 

(1) For prior office uses, there shall be 
credit for the number of gross square feet of 
office use being eliminated as part of the project. 



Supp. No. 9, June 2007 



Sec. 38.3-1. 



San Francisco - Administrative Code 



3740 



(2) For prior uses other than office use, 
there shall be a credit for the number of gross 
square feet of non-office use being eliminated 
multiplied by an adjustment factor to reflect the 
difference between office building peak-period 
municipal railway trip generation rates and peak- 
period municipal railway trip generation rates 
for other uses. The adjustment factor shall be 
determined by the director as follows: 

(A) The adjustment factor shall be a frac- 
tion, the numerator of which shall be the peak- 
period municipal railway trip generation rate 
which the director shall determine, in consulta- 
tion with the department of city planning applies 
to the class of prior use being eliminated by the 
project. 

(B) The denominator of the fraction shall be 
the peak-period municipal railway trip genera- 
tion rate for office use used in the most recent 
calculation of the transit impact development fee 
schedule approved by the board of supervisors. 

(C) Notwithstanding the foregoing, the ad- 
justment factor shall not exceed one. (Added by 
Ord. 144-07, File No. 070133, App. 6/29/2007) 

SEC. 38.4. TRANSIT IMPACT 
DEVELOPMENT FEE SCHEDULE. 

A. TIDE Schedule. The TIDF Schedule 
shall be as follows: 



Economic Activity 
Category 


TIDF Per Gross 

Square Foot of 

Development 


Cultural/Institution/ 
Education 


$10.00 


Management, Infor- 
mation and Profes- 
sional Services 


$10.00 


Medical and Health 
Services 


$10.00 


Production/Distribu- 
tion/Repair 


$8.00 


Retail/Entertainment 


$10.00 


Visitor Services 


$8.00 



B. Biennial Adjustment. Biennially, be- 
ginning July 1, 2005, the TIDF Schedule shall be 
adjusted, without further action by the Board of 
Supervisors, to reflect the average annual change 
in the Bay Area Consumer Price Index for the 
prior two years, as reported by the Association of 
Bay Area Governments, and as determined by 
the Director. (Added by Ord. 199-04, File No. 
040141, App. 8/5/2004) (Former Sec. 38.4 amended 
by Ord. 491-85, App. 10/31/85; Ord. 76-03, File 
No. 020592, App. 5/2/2003; repealed by Ord. 
199-04) 

SEC. 38.5. SETTING OF TIDF. 

Before obtaining the first building or site 
permit for any new development in the City on or 
after September 4, 2004, each sponsor shall file 
with the Director, on such form as the Director 
may develop, a report indicating the number of 
gross square feet of use of the new development 
and any other information the Director may 
require to determine the sponsor's obligation to 
pay the TIDF. Each sponsor of a new develop- 
ment who had applied for a building or site 
permit, but who had not obtained an approval of 
the building permit or site permit before Septem- 
ber 4, 2004, shall file the same report prior to 
obtaining a final certificate of occupancy. Except 
where an exemption otherwise applies under 
this Chapter, the Director shall determine the 
number of gross square feet of use in each 
applicable economic activity category, disregard- 
ing the number of pre-existing gross square feet 
of use being retained in each such category, 
apply the fee schedule, and determine the fee, 
which shall be subject to any adjustments to the 
TIDF Schedule that occur prior to final payment 
of any TIDF due. The Director shall mail a copy 
of his or her written determination to the spon- 
sor. The sponsor may appeal the determination 
of the number of gross square feet of use subject 
to the fee, the economic activity category, or the 
credits described in Section 38.6, to the MTA 
Board. If the sponsor notifies the Director of its 
acceptance of the determination, or does not 
submit an appeal to the MTA Board within 15 
days following the date of mailing of notice of the 
Director's determination, the Director's determi- 



Supp. No. 9, June 2007 



3740.1 



Transit Impact Development Fee 



Sec. 38.7. 



nation shall be final, and a notice of such deter- 
mination shall be provided to DBI and the Trea- 
surer. DBI may not issue a site or building 
permit for any new development until it has 
received notice from the MTA of the final deter- 
mination of the amount of the Transit Impact 
Development Fee to be paid. The MTA shall not 
change the amount of the TIDF based on changes 
to the amount of gross square feet of new devel- 
opment during construction of the new develop- 
ment unless the sponsor applies for a new build- 
ing permit to reflect such changes. (Added by 
Ord. 199-04, File No. 040141, App. 8/5/2004) 
(Former Sec. 38.5 amended by Ord. 224-84, App. 
5/15/84; Ord. 76-03, File No. 020592, App. 5/2/ 
2003; repealed by Ord. 199-04; Ord. 144-07, File 
No. 070133, App. 6/29/2007) 

SEC. 38.6. CREDITS. 

In determining the number of gross square 
feet of use to which the TIDF applies, the Direc- 
tor shall provide a credit for prior uses elimi- 
nated on the site. The credit shall be calculated 
according to the following formula: 

(a) There shall be a credit for the number of 
gross square feet of use being eliminated by the 
new development, multiplied by an adjustment 
factor to reflect the difference in the fee rate of 
the use being added and the use being elimi- 
nated. The adjustment factor shall be deter- 
mined by the Director as follows: 

(1) The adjustment factor shall be a frac- 
tion, the numerator of which shall be the fee rate 
which the Director shall determine, in consulta- 
tion with the Department of City Planning, if 
necessary, applies to the economic activity cat- 
egory in the most recent calculation of the TIDF 
Schedule approved by the MTA Board for the 
prior use being eliminated by the project. 

(2) The denominator of the fraction shall be 
the fee rate for the use being added, as set forth 
in the most recent calculation of the TIDF Sched- 
ule approved by the MTA Board. 

(b) A credit for a prior use may be given only 
if the prior use was active on the site within five 
years before the date of the application for a 
building or site permit for the proposed use. 



(c) As of September 4, 2004, no sponsor 
shall be entitled to a refund of the TIDF on a 
building for which the fee was paid under the 
former Chapter 38. 

(d) Notwithstanding the foregoing, the ad- 
justment factor shall not exceed one. (Added by 
Ord. 199-04, File No. 040141, App. 8/5/2004) 
(Former Sec. 38.6 added by Ord. 224-81, App. 
5/5/81; amended by Ord. 76-03, File No. 020592, 
App. 5/2/2003; repealed by Ord. 199-04; Ord. 
144-07, File No. 070133, App. 6/29/2007) 

SEC. 38.7. REVIEW OF FEE SCHEDULE. 
A. Five- Year Review. 

(1) Commencing five years after the effec- 
tive date of this ordinance, and every five years 
thereafter, or more often as the MTA Board may 
deem necessary, the Director shall prepare a 
report for the MTA Board and the Board of 
Supervisors with recommendations regarding 
whether the TIDF for each economic activity 
category should be increased, decreased, or re- 
main the same. In making such recommenda- 
tions, and to the extent that new information is 
available, the Director shall update the following 
information and estimates that were used in the 
TIDF Study to calculate the base service stan- 
dard fee rates, and any other information that 
the Director deems appropriate. 

(a) The base service standard; 

(b) Capital and operating costs; 

(c) Federal and state grant funds received 
by MUNI; 

(d) Passenger fsire revenue; 

(e) Daily revenue service hours; 

(f) Cost per revenue service hour; 

(g) Trip generation rates by economic activ- 
ity category; 

(h) Cost per trip; 

(i) Cost per gross square foot of develop- 
ment by economic activity category; 

(j) Net present value factor; 

(k) Useful life period(s) for new develop- 
ment by economic activity category; 



Supp. No. 9, June 2007 



[INTENTIONALLY LEFT BLANK] 



Supp. No. 9, June 2007 



3741 



Transit Impact Development Fee 



Sec. 38.8. 



(1) Estimated annual rate of return on the 
proceeds of the fee; 

(m) The placement of particular land uses 
in economic activity categories. 

Where applicable, the Director shall use the 
most recent MUNI information as submitted to 
the National Transit Database. The denominator 
of the revised base service standard shall be 
calculated using the most recent estimates of 
daily automobile and transit trips developed by 
the City's Planning Department or other City or 
state agency. 

(2) In the report, the Director shall (a) iden- 
tify the base service standard fee rates per gross 
square foot in each economic activity category; 
and (b) propose a fee for each economic activity 
category. 

(3) After receiving this report and making it 
available for public distribution, the Board of 
Supervisors shall conduct a public hearing in 
which it shall consider the Director's report, hear 
testimony from any interested members of the 
public, and receive such other evidence as it may 
deem necessary. At the conclusion of that hear- 
ing, the Board shall make findings regarding 
whether the revenues projected to be recovered 
under the proposed Fee Schedule would be rea- 
sonably related to and would not exceed the costs 
incurred by MUNI to maintain the applicable 
base service standard, in light of demands caused 
by new development. The Board of Supervisors 
shall then make any necessary or appropriate 
revisions to the TIDF Schedule. 

(4) The Board shall consider the Director's 
report in light of the most recent five-year review 
of the Housing Fee (Planning Code § 313.15), 
Child Care Fee (Planning Code § 314.7) and 
Inclusionary Housing Fee (Planning Code 
§ 315.8(e)). MUNI and the Planning Department 
shall make every effort to coordinate application 
of the TIDF with the City's other developer fees 
to avoid unnecessarily encumbering sponsors of 
new development. 

B. Principles in Calculating Fee. The 
following principles have been and shall in the 
future be observed in calculating the TIDF: 

(1) Actual cost information provided to the 
National Transit Database shall be used in cal- 
culating the fee rates. Where estimates must be 



made, those estimates should be based on such 
information as the Director or his or her delegate 
considers reasonable for the puipose. 

(2) The rates shall be set at an actuarially 
sound level to ensure that the proceeds, includ- 
ing such earnings as may be derived from invest- 
ment of the proceeds and amortization thereof, 
do not exceed the capital and operating costs 
incurred in order to maintain the applicable base 
service standard in light of the demands created 
by new development subject to the fee over the 
estimated useful life of such new development. 
For purposes of this Ordinance, the estimated 
useful life of a new development is 45 years. 
(Added by Ord. 199-04, File No. 040141, App. 
8/5/2004) (Former Sec. 38.7 added by Ord. 224- 
81, App. 5/5/81; repealed by Ord. 199-04) 

SEC. 38.8. USE OF PROCEEDS FROM 
TRANSIT IMPACT DEVELOPMENT FEE. 

Money received from collection of the TIDF, 
including earnings from investments of the TIDF, 
shall be held in trust by the lYeasurer under 
Section 66006 of the Mitigation Fee Act (Cal. 
Gov. Code § 60000 et seq.) and shall be distrib- 
uted according to the fiscal and budgetary pro- 
visions of the San Francisco Charter and the 
Mitigation Fee Act, subject to the following con- 
ditions and limitations. TIDF funds may be used 
to increase revenue service hours reasonably 
necessary to mitigate the impacts of new non- 
residential development on public transit and 
maintain the applicable base service standard, 
including, but not limited to: capital costs asso- 
ciated with establishing new transit routes, ex- 
panding transit routes, and increasing service on 
existing transit routes, including, but not limited 
to, procurement of related items such as rolling 
stock, and design and construction of bus shel- 
ters, stations, tracks, and overhead wires; opera- 
tion and maintenance of rolling stock associated 
with new or expanded transit routes or increases 
in service on existing routes; capital or operating 
costs required to add revenue service hours to 
existing routes; and related overhead costs. Pro- 
ceeds from the TIDF may also be used for all 



Sec. 38.8. 



San Francisco - Administrative Code 



3742 



costs required to administer, enforce, or defend 
this ordinance. (Added by Ord. 199-04, File No. 
040141, App. 8/5/2004) (Former Sec. 38.8 amended 
by Ord. 224-84, App. 5/15/84; Ord. 76-03, File No. 
020592, App. 5/2/2003; repealed by Ord. 199-04) 



Sec. 38.8.5. 

(Added by Ord. 224-84, App. 5/15/84; amended 

by Ord. 76-03, File No. 020592, App. 5/2/2003; 

repealed by Ord. 199-04, File No. 040141, App. 

8/5/2004) 

SEC. 38.9. RULES AND REGULATIONS. 

The MTA is empowered to adopt such rules, 
regulations, and administrative procedures as it 
deems necessary to implement this Chapter. In 
the event of a conflict between any MTA rule, 
regulation or procedure and this ordinance, this 
ordinance shall prevail. (Added by Ord. 199-04, 
File No. 040141, App. 8/5/2004) (Former Sec. 
38.9 added by Ord. 224-81, App. 5/5/81; amended 
by Ord. 76-03, File No. 020592, App. 5/2/2003; 
repealed by Ord. 199-04) 

SEC. 38.10. NONPAYMENT, 
RECORDATION OF NOTICE OF FEE AND 
NOTICE OF DELINQUENCY, 
ADDITIONAL REQUEST; NOTICE OF 
ASSESSMENT OF INTEREST, AND 
INSTITUTION OF LIEN PROCEEDINGS. 

A. Upon the Director's determination that a 
development is subject to this ordinance, he or 
she may cause the County Recorder to record a 
notice that such development is subject to the 
TIDF The County Recorder shall serve or mail a 
copy of such notice to the persons liable for 
payment of the fee and the owners of the real 
property described in the notice. The notice shall 
include (1) a description of the real property 
subject to the fee; (2) a statement that the 
development is subject to the imposition of the 
fee; and (3) a statement that the amount of the 
fee to which the building is subject is determined 
under Sections 38.4, 38.5 and related provisions 
of this ordinance. 



B. When the Director determines that the 
fee is due, the Director shall notify the Treasurer, 
who shall send a request for payment to the 
sponsor. 

C. Pajrment of the TIDF imposed by this 
ordinance is delinquent if (1) in the case of a fee 
not payable in installments, the fee is not paid 
within 30 days of request for payment; (2) in the 
case of a fee payable in installments (for a fee 
determined prior to the effective date of this 
ordinance), the fee installment is not paid within 
30 days of the date fixed for pajnnent. 

D. Where the TIDF is not paid within 30 
days of request for payment, and where the 
TIDF is payable in installments (for a fee deter- 
mined prior to the effective date of this ordi- 
nance) and any installment is not paid within 30 
days of the date fixed for payment: 

(1) The Treasurer or his or her designee 
may cause the County Recorder to record a 
notice of delinquent TIDF which shall include: 
(a) the amount of the delinquent fee; (b) the 
amount of the entire fee as reflected on the final 
determination and a statement of whether the 
fee is payable in installments; (c) the fee interest 
and penalty then due; (d) the interest and pen- 
alties that shall accrue on the delinquent fee if 
not promptly paid; (e) a description of the real 
property subject to the fee; (f) notification that if 
the fee is not promptly paid proceedings will be 
instituted before the Board of Supervisors to 
impose a lien for the unpaid fee together with 
any penalties and interest against the real prop- 
erty described in the delinquency notice; (g) 
notification of the fee payer's right to appeal the 
delinquency determination to the MTA Board 
within 15 days of the notice to the fee payer. 

(2) Where the Treasurer determines to record 
a notice of delinquency, he or she shall also serve 
or mail the notice of delinquent TIDF to the 
persons liable for the fee and to the owners of the 
real property described on the notice. 

(3) Where a notice of TIDF delinquency has 
been recorded and the delinquent fee is paid or 
the Treasurer's determination of delinquency is 
reversed by appeal to the MTA Board or the 
delinquency is otherwise cured, the Treasurer 



3743 



Transit Impact Development Fee 



Sec. 38.11. 



shall promptly cause the County Recorder to 
record a notice that the TIDF delinquency has 
been cured. Said notice shall include: (a) descrip- 
tion of the real property affected; (b) the book 
and page number of the county record wherein 
the notice of delinquency was recorded; (c) the 
date the notice of delinquency was recorded; (d) 
notification that the delinquency reflected on the 
notice of delinquency was cured and the date of 
cure; (e) the amount of the entire fee as reflected 
on the final determination; (f) if applicable, the 
amount of the fee paid to effect the cure; and (g) 
if applicable, a statement that the fee was pay- 
able in installments and specification of the 
delinquency installments cured; (h) if applicable, 
the amount of the fee paid to effect the cure. 

(4) The Treasurer shall serve or mail the 
notice that the TIDF delinquency has been cured, 
referred to in Section 38.10.D(3) of this ordi- 
nance, to the persons liable for the fee and to the 
owners of the real property described in such 
notice. 

E. Where the TIDF, not payable in install- 
ments, is not paid within 30 days of request for 
payment, and where the TIDF is payable in 
installments (for a fee determined prior to the 
effective date of this ordinance) and the install- 
ment is not paid within 30 days of the date fixed 
for payment, the Treasurer or his or her designee 
shall mail an additional request for pajonent and 
notice to the owner stating the following: 

(1) If the amount due is not paid within 30 
days of the date of mailing the additional request 
and notice, interest at the rate of one and one- 
half percent per month or portion thereof shall 
be assessed upon the fee or installment due. 

(2) With respect to both non-installment 
and installment fees, if the account is not current 
within 60 days of the date of mailing the addi- 
tional request and notice, the Treasurer shall 
institute proceedings to record a lien in accor- 
dance with Section 38.11 for the entire balance 
and any accrued interest against the property 
upon which the fee is owed. 

F. Thirty days after mailing the additional 
request for payment, the Treasurer may assess 
interest as specified in Paragraph 38.10.E(1) 



above. Sixty days after mailing the additional 
request for payment and notice, the '^Preasurer 
may institute lien proceedings as specified in 
Section 38.11. 

G. The Treasurer shall submit a report to 
the Director on a quarterly basis of all fees 
collected for the previous quarter, which report 
shall include the property address, name of spon- 
sor or owner of the property, and the amount of 
the fee, including interest, if any, collected. (Added 
by Ord. 199-04, File No. 040141, App. 8/5/2004) 
(Former Sec. 38.10 amended by Ord. 18-87, App. 
1/29/87; Ord. 322-00, File No. 001917, App. 12/ 
28/2000; Ord. 76-03, File No. 020592, App. 5/2/ 
2003; repealed by Ord. 199-04) 

SEC. 38.11. LIEN PROCEEDINGS; 
NOTICE. 

If payment of the fee not payable in install- 
ments is not received within 30 days following 
mailing of the additional request and notice, or if 
with respect to installment payments, the ac- 
count is not brought current within 60 days of 
the mailing of the additional request and notice, 
the Treasurer shall initiate proceedings in accor- 
dance with Article XX of Chapter 10 of the San 
Francisco Administrative Code to make the en- 
tire unpaid balance of the TIDF, including inter- 
est on the unpaid fee or installments, a lien 
against all parcels used for the development 
project. The Treasurer shall send all notices 
required by that Ai'ticle to the owner of the 
property as well as the sponsor, The lYeasurer 
shall also prepare a preliminary report notifying 
the sponsor of a hearing to confirm such report 
by the Board of Supervisors at least 10 days 
before the date of the hearing. The report to the 
sponsor shall contain the sponsor's name, a de- 
scription of the sponsor's development project, a 
description of the parcels of real property to be 
encumbered as set forth in the Assessor's Map 
Books for the current year, a description of the 
alleged violation of this ordinance, and shall fix a 
time, date, and place for hearing. The IVeasurer 
shall cause this report to be mailed to the spon- 
sor and each owner of record of the parcels of real 
property subject to lien. Except for the release of 
the lien recording fee authorized by Administra- 



Sec. 38.11. 



San Francisco - Administrative Code 



3744 



tive Code Section 10.237, all sums collected by 
the Tax Collector under this ordinance shall be 
held in trust by the Treasurer and distributed as 
provided in Section 38.6 of this Chapter. (Added 
by Ord. 199-04, File No. 040141, App. 8/5/2004) 
(Former Sec. 38.11 amended by Ord. 491-85, 
App. 10/31/85; Ord. 322-00, File No. 001917, 
App. 12/28/2000; Ord. 76-03, File No. 020592, 
App. 5/2/2003; repealed by Ord. 199-04) 

SEC. 38.12. MANNER OF GIVING 
NOTICES. 

Any notice required to be given under this 
ordinance to a sponsor or owner shall be suffi- 
ciently given or served upon the sponsor or 
owner for all purposes under this ordinance if 
personally served upon the sponsor or owner, or 
if deposited, postage prepaid, in a post office 
letter box addressed in the name of the sponsor 
or owner at the official address of the sponsor or 
owner maintained by the Tax Collector of the 
City and County for the mailing of tax bills; or, if 
no such address is available, to the sponsor at 
the address of the development project, and to 
the applicant for the site or building permit at 
the address on the permit application. (Added by 
Ord. 199-04, File No. 040141, App. 8/5/2004) 
(Former Sec. 38.12 added as Sec. 38.17 by Ord. 
224-81, App. 5/5/81; renumbered 38.12 by Ord. 
322-00, File No. 001917, App. 12/28/2000; re- 
pealed by Ord. 199-04. Prior Sec. 38.12 was 
repealed by Ord. 322-00.) 

SEC. 38.13. CHARITABLE EXEMPTIONS. 

A. When the property or a portion thereof 
will be exempt from real property taxation or 
possessory interest taxation under California 
Constitution, Article XIII, Section 4, as imple- 
mented by California Revenue and Taxation Code 
Section 214, then the sponsor shall not be re- 
quired to pay the TIDF attributed to the new 
development in the exempt property or portion 
thereof, so long as the property or portion thereof 
continues to enjoy the aforementioned exemp- 
tion from real property taxation. 

B. The TIDF shall be calculated for exempt 
structures in the same manner and at the same 
time as for all other structures. The sponsor may 



apply to the MTA for an exemption under the 
standards set forth in subsection A above. In the 
event the Agency determines that the sponsor is 
entitled to an exemption under this Section, it 
shall cause to be recorded a notice advising that 
the TIDF has been calculated and imposed upon 
the structure and that the structure or a portion 
thereof has been exempted from pa5rment of the 
fee but that if the property or portion thereof 
loses its exempt status during the 10-year period 
commencing with the date of the imposition of 
the TIDF, then the building owner shall be 
subject to the requirement to pay the fee. 

C. If within 10 years from the date of the 
issuance of the Certificate of Final Completion 
and Occupancy, the exempt property or portion 
thereof loses its exempt status, then the sponsor 
shall, within 90 days thereafter, be obligated to 
pay the TIDF, reduced by an amount reflecting 
the duration of the charitable exempt status in 
relation to the useful life estimate used in deter- 
mining the TIDF for that structure. The amount 
remaining to be paid shall be determined by 
recalculating the fee using a useful life equal to 
the useful life used in the initial calculation 
minus the number of years during which the 
exempt status has been in effect. After the TIDF 
has been paid, the Agency shall record a release 
of the notice recorded under subsection B. above. 

D. In the event a property owner fails to 
pay a fee within the 90-day period, a notice for 
request of payment shall be served by the Trea- 
surer under Section 38.10.B of this Chapter. 
Thereafter, upon nonpajrment, a lien proceeding 
shall be instituted under Section 38.11 of this 
Chapter. (Added by Ord. 199-04, File No. 040141, 
App. 8/5/2004) (Former Sec. 38.13 added as Sec. 
38.18 by Ord. 224-81, App. 5/5/81; renumbered 
38.13 by Ord. 322-00, File No. 001917, App. 
12/28/2000; repealed by Ord. 199-04. Prior Sec. 
38.13 was repealed by Ord. 322-00.) 

SEC. 38.14. SEVERABILITY. 

The provisions of this ordinance shall not 
apply to any person, association, corporation or 
to any property as to whom or which it is beyond 
the power of the City to impose the fee herein 
provided. If any sentence, clause, section or part 



3745 Transit Impact Development Fee Sec. 38.14. 



of this ordinance, or any fee imposed upon any 
person or entity is found to be unconstitutional, 
illegal or invalid, such unconstitutionality, ille- 
gality, or invalidity shall affect only such clause, 
sentence, section or part of this ordinance, or 
person or entity; and shall not affect or impair 
any of the remaining provisions, sentences, 
clauses, sections or other parts of this ordinance, 
or its effect on other persons or entities. It is 
hereby declared to be the intention of the Board 
of Supervisors of the City that this ordinance 
would have been adopted had such unconstitu- 
tional, illegal or invalid sentence, clause, section 
or part of this ordinance not been included herein; 
or had such person or entity been expressly 
exempted from the application of this ordinance. 
To this end the provisions of this ordinance are 
severable. (Added by Ord. 199-04, File No. 040141, 
App. 8/5/2004) (Former Sec. 38.14 added by Ord. 
224-81, App. 5/5/81; repealed by Ord. 322-00, 
File No. 001917, App. 12/28/2000; repealed by 
Ord. 199-04) 

Sec. 38.15. 

(Added by Ord. 224-81, App. 5/5/81; repealed by 

Ord. 322-00, File No. 001917, App. 12/28/2000) 

Sec. 38.16. 

(Added by Ord. 224-81, App. 5/5/81; repealed by 

Ord. 322-00, File No. 001917, App. 12/28/2000) 

Sec. 38.17. 

(Added by Ord. 224-81, App. 5/5/81; renumbered 
as Sec. 38.12 by Ord. 322-00, File No. 001917, 
App. 12/28/2000) 

Sec. 38.18. 

(Added by Ord. 224-81, App. 5/5/81; renumbered 
as Sec. 38.13 by Ord. 322-00, File No. 001917, 
App. 12/28/2000) 

Sec. 38.45. 

(Added by Ord. 223-84, App. 5/10/84; amended 

by Ord. 76-03, File No. 020592, App. 5/2/2003; 

repealed by Ord. 199-04, File No. 040141, App. 

8/5/2004) 



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CHAPTER 39: [RESERVED] 



Sec. 39.1. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; repealed by Ord. 
171-03. File No. 030422, App. 7/3/2003) 

Sec. 39.2. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; Ord. 361-98, App. 
12/11/98; Ord. 2-00, File No. 992000, App. 1/13/ 
2000; repealed by Ord. 171-03. File No. 030422, 
App. 7/3/2003) 

Sec. 39.3. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; repealed by Ord. 
171-03. File No. 030422, App. 7/3/2003) 



Sec. 39.8. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; Ord. 361-98, App. 
12/11/98; Ord. 2-00, File No. 992000, App. 1/13/ 
2000; repealed by Ord. 171-03. File No. 030422, 
App. 7/3/2003) 

Sec. 39.9. 

(Added by Ord. 274-97, App. 7/3/97; repealed by 

Ord. 171-03. File No. 030422, App. 7/3/2003) 

Sec. 39.10. 

(Added by Ord. 274-97, App. 7/3/97; repealed by 

Ord. 171-03. File No. 030422, App. 7/3/2003) 



Sec. 39.4. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; repealed by Ord. 
171-03. File No. 030422, App. 7/3/2003) 

Sec. 39.5. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; Ord. 231-99, File No. 
991246, App. 8/20/99; Ord. 2-00, File No. 992000, 
App. 1/13/2000; repealed by Ord. 171-03. File No. 
030422, App. 7/3/2003) 

Sec. 39.6. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; Ord. 231-99, File No. 
991246, App. 8/20/99; Ord. 2-00, File No. 992000, 
App. 1/13/2000; repealed by Ord. 171-03. File No. 
030422, App. 7/3/2003) 

Sec. 39.7. 

(Added by Ord. 401-96, App. 10/21/96; amended 
by Ord. 274-97, App. 7/3/97; Ord. 2-00, File No. 
992000, App. 1/13/2000; repealed by Ord. 171-03. 
File No. 030422, App. 7/3/2003) 



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3761 



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CHAPTER 40: HOUSING CODE ENFORCEMENT LOAN PROGRAM 

Article Page 

I. IN GENERAL 3773 

II. RESPONSIBILITIES OF BOARD OF SUPERVISORS 3781 

IH. ADMINISTRATION OF PROGRAM 3791 

IV. LOAN COMMITTEE 3805 

V. REHABILITATION FINANCING 3815 

VI. FINANCING LIMITATIONS 3825 

VEL TERMS OF LOANS 3835 

VIIL MISCELLANEOUS PROVISIONS 3847 



3771 



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ARTICLE I: IN GENERAL 



Sec. 40.1. Purpose. 

Sec. 40.2. Definitions. 

Sec. 40.3. References to Public Officials 

and Public Agencies. 

SEC. 40.1. PURPOSE. 

This Chapter provides for the administration 
and financing of a systematic Housing Code 
Enforcement Loan Program (HELP) in the City 
and County of San Francisco. The provisions of 
this Chapter and Chapter 32 of the San Fran- 
cisco Administrative Code constitute the City 
and County's comprehensive residential rehabili- 
tation financing program adopted pursuant to 
the Marks-Foran Residential Rehabilitation Act 
of 1973, Section 37910, et seq. of the Health and 
Safety Code. 

The purpose of HELP is to improve the 
condition of housing for the public, especially low 
and moderate income tenants presently residing 
in apartments and residential hotels, and to 
improve the quality of life in San Francisco by 
providing a means through which owners of 
deteriorating residential property may obtain 
financial assistance to rehabilitate their prop- 
erty and maintain it in a residential use, thus 
preserving and enhancing the City and County's 
low income housing stock. 

In establishing a systematic Housing Code 
Enforcement Loan Program, the Board of Super- 
visors finds and declares that: 

(a) There is a shortage in San Francisco of 
safe, decent, and sanitary housing. 

(b) The preservation of existing housing is 
the most effective way to provide decent housing 
in the City and County of San Francisco. 

(c) The cost of repairing and upgrading sub- 
standard residential structures is generally far 
less costly than demolition and replacement hous- 
ing. 

(d) Rehabilitation of existing housing re- 
sults in less personal hardship, involves less 
overall social costs, and retains neighborhood 
identity. 



(e) A city/countAAvide program of systematic 
code enforcement in all multifamily buildings 
has been found to be a reliable raanner in which 
to determine which of these existing residential 
structures are substandard and in need of reha- 
bilitation. 

(f) The cost of financing rehabilitation of 
such structures is a major and substantial factor 
affecting the supply and cost of decent, safe, and 
sanitary housing in San Francisco. 

(g) The revenue bonds provided for in this 
Chapter will substantially lower the cost of fi- 
nancing such rehabilitation 

(h) This lowered cost of rehabilitation financ- 
ing will increase the supply of adequate housing 
by encouraging rehabilitation rather than demo- 
lition of these substandard buildings. 

(i) The lowered cost of rehabilitation financ- 
ing will increase the supply of adequate housing 
by speeding the rehabilitation of these substan- 
dard buildings. 

(j) This lowered cost of rehabilitation financ- 
ing will lower the cost of decent, safe, and sani- 
taiy housing in San Francisco. 

(k) This lowered cost of rehabilitation financ- 
ing is in the public interest and serves a public 
purpose by lowering the cost of maintaining an 
adequate supply of safe, decent, and sanitary 
housing in the City and County of San Francisco. 

(1) A public purpose is also served by using 
rehabilitation financing, made available pursu- 
ant to this Chapter, to encourage voluntary code 
compliance in multi-family buildings located in 
San Francisco's Neighborhood Strateg}^ Areas. 

(m) Pursuant to regulations of the United 
States Department of Housing and Urban Devel- 
opment, the City and County of San Francisco 
has designated a nuraber of Neighborhood Strat- 
egy Areas throughout the City and County. Such 
areas have been selected for comprehensive re- 



3773 



Sec. 40.1. 



San Francisco - Administrative Code 



3774 



vitalization programs using a variety of local, 
state and federal programs; to upgrade and sta- 
bilize these residential communities. 

(n) The City and County's goal of revitaliza- 
tion of these areas will be promoted if substan- 
dard multi-family buildings in the areas are 
brought into code compliance in advance of the 
time that these buildings would ordinarily be 
required to meet rehabilitation standards under 
a systematic code enforcement program. 

(o) Allowing owners of multi-family build- 
ings in such areas, who request a binding inspec- 
tion of their buildings, to apply for rehabilitation 
financing pursuant to this Chapter will encour- 
age voluntary code compliance. 

(p) Encouraging voluntary code compliance 
for multi-family buildings located in Neighbor- 
hood Strategy Areas serves a public purpose in 
that it accelerates code compliance in buildings 
which will eventually be subject to a systematic 
code enforcement program and furthers the City 
and County's commitment to revitalize various 
neighborhoods throughout the City and County. 

(q) The shortage of safe, decent and sani- 
tary housing is especially acute for low and 
moderate income tenants of apartments and 
residential hotels. 

(r) A public purpose is also served by mini- 
mizing the displacement of existing tenants of 
buildings rehabilitated under this program by 
establishing effective tenant protections and by 
prohibiting the use of HELP loans for the con- 
version of multifamily housing to condominium 
or commercial uses. (Added by Ord. 482-80, App. 
10/17/80) 

SEC. 40.2. DEFINITIONS. 

Unless the context otherwise requires, the 
following definitions govern the construction of 
this Chapter: 

(a) "Bonds" means any bonds, notes, in- 
terim certificates, debentures, or other obliga- 
tions issued by the City and County pursuant to 
this Chapter and which are payable exclusively 
from revenues, as defined, and from any other 



funds specified in this Chapter upon which the 
bonds may be made a charge and from which 
they are payable. 

(b) "City" means the City and County of San 
Francisco. 

(c) "Commercial Use" means any nonresi- 
dential use including, but not limited to, a store, 
office, manufacturing facility, warehouse, or other 
business facility. For the purpose of this Chapter, 
commercial use shall include a tourist facility or 
tourist hotel. 

(d) "Conventional HELP Loan" means any 
loan made for the purpose of meeting rehabilita- 
tion standards pursuant to the provisions of this 
Chapter. 

(e) "Financing" means the lending of mon- 
eys or any other thing of value for the purpose of 
repair and improvement of a residence necessary 
to meet rehabilitation standards. 

(f) "Housing Code Enforcement Loan Pro- 
gram" or "HELP" has the same meaning as 
"program." 

(g) "Loan Committee" means the committee 
established in accordance with Section 40.13. 

(h) "Loan Fund" means the fund estab- 
lished with the proceeds of bonds issued pursu- 
ant to the provisions of this Chapter or any other 
fund established for the purpose of making loans 
to property owners pursuant to this Chapter. 

(i) "Low and Moderate Income Household" 
means a household whose income does not ex- 
ceed 120 percent of the median income for the 
City and County by family size. 

(j) "Multi-Family Buildings" means build- 
ings containing three or more dwellings units, as 
defined in the San Francisco Housing Code, or 
more than six guest rooms as defined in the San 
Francisco Housing Code. 

(k) "Neighborhood Strategy Area" means an 
area designated by the City and County as a 
"Neighborhood Strategy Area" as that term is 
defined in regulation issued by the United States 
Department of Housing and Urban Develop- 
ment. 



3775 Housing Code Enforcement Loan Program - In General Sec. 40.3. 



(1) "Participating Party" means any person, 
company, corporation, partnership, firm or other 
entity or group of entities requiring financing for 
the purpose of meeting rehabihtation standards 
pursuant to the provisions of this Chapter, 

(m) "Program" means the systematic Hous- 
ing Code Enforcement Loan Program or HELP 
described in this Chapter and includes, but is not 
hmited to, the provisions for code enforcement 
and financing residential rehabilitation in a city- 
wide program of systematic enforcement of reha- 
bilitation standards in all multi-family build- 
ings. 

(n) "Rehabilitation Standards" means the 
standards established in the City Housing Code 
and other applicable codes relating to the physi- 
cal conditions of existing residential structures. 

(o) "Residence" means real property im- 
proved with a residential structure. 

(p) "Residential Rehabilitation" means the 
repairs and improvements to a substandard resi- 
dential structure necessary to meet rehabilita- 
tion standards. 

(q) "Systematic Enforcement" means the en- 
forcement of rehabilitation standards in accor- 
dance with a systematic program of making 
inspections of all multi-family dwelling struc- 
tures in accordance with objective criteria for 
selection or order of selection of dwelling struc- 
tures to be inspected. (Added by Ord. 482-80, 
App. 10/17/80) 

SEC. 40.3. REFERENCES TO PUBLIC 
OFFICIALS AND PUBLIC AGENCIES. 

(a) Unless otherwise indicated, all public 
officials and public agencies named in this Chap- 
ter are officials and agencies of the City and 
County. 

(b) Whenever a City and County official is 
referred to in this Chapter, the reference in- 
cludes that official and his or her designee or 
designees. 

(c) All references to the Charter or to ordi- 
nances are references to the Charter or to ordi- 
nances of the City and County (Added by Ord. 
482-80, App. 10/17/80) 



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ARTICLE II: RESPONSIBILITIES OF BOARD OF SUPERVISORS 



Sec. 40.4. Issuance of Bonds. 

Sec. 40.5. Approval of Fees, Charges and 

Interest Rates on Financing. 
Sec. 40.6. Revision of Loan Charges. 

SEC. 40.4. ISSUANCE OF BONDS. 

The Board of Supervisors may from time to 
time by resolution authorize procedures for the 
issuance of bonds for the purpose of establishing 
a loan fund to be used to assist property owners 
with the rehabilitation of residential structures 
as required in a City and County-wide program 
of systematic enforcement of rehabilitation stan- 
dards in multi-family buildings. The repayment 
of principal, interest and other charges on the 
loans to the property owners, together with such 
other moneys as the Board of Supervisors may, 
in its discretion, make available therefor, shall 
be the sole source of funds pledged by the City 
and County for repayment of such bonds. 

Bonds issued under the provisions of this 
Chapter shaill not be deemed to constitute a debt 
or liability of the City and County or a pledge of 
the faith and credit of the City and County, but 
shall be payable solely from the funds specified 
in this Section. The issuance of such bonds shall 
not directly, indirectly or contingently obligate 
the Board of Supervisors to levy or to pledge any 
form of taxation whatever therefore, or to make 
any appropriation for their payment. (Added by 
Ord. 482-80, App. 10/17/80) 



SEC. 40.6. REVISION OF LOAN 
CHARGES. 

Prior to any revision of the fees, charges and 
interest rates for financing residential rehabili- 
tation, the Board of Supervisors shall prescribe 
standards for the revision of such fees, charges 
and interest rates. Such standards: 

(a) Shall be adopted by the Board of Super- 
visors after a public hearing preceded by public 
notice to affected parties; and 

(b) May reflect only changes in interest 
rates on the City and County's bonds, losses due 
to defaults, and bona fide changes in loan servic- 
ing charges related to the administration of a 
program under the provisions of this Chapter. 
(Added by Ord. 482-80, App. 10/17/80) 



SEC. 40.5. APPROVAL OF FEES, 
CHARGES AND INTEREST RATES ON 
FINANCING. 

The Board of Supervisors shall, upon the 
recommendation of the Chief Administrative Of- 
ficer, approve by resolution prior to levy, all fees, 
charges and interest rates to be charged partici- 
pating parties in connection with financing resi- 
dential rehabihtation. (Added by Ord. 482-80, 
App. 10/17/80) 



[The next page is 3791] 



3781 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE III: ADMINISTRATION OF PROGRAM 



Sec. 40.7. Responsibility for 

Administration of the Program. 
Sec. 40.8. Adoption of Objective Selection 

Criteria for Systematic 

Enforcement of Rehabilitation 

Standards. 
Sec. 40.9. Inspection of Buildings in 

Neighborhood Strategy Areas. 
Sec. 40.10. Rules and Regulations. 
Sec. 40.11. Management of Bond Proceeds. 

Sec. 40.12. Recommendation of Fees, 

Charges, and Interest Rates on 
Financing. 

Sec. 40.13. Notice of Defaults and 
Foreclosures. 

SEC. 40.7. RESPONSIBILITY FOR 
ADMINISTRATION OF THE PROGRAM. 

The Chief Administrative Officer shall be 
responsible for administration of all aspects of 
the Housing Code Enforcement Loan Program 
except those aspects for which responsibility is 
specifically retained by the Board of Supervisors 
or assigned by the Board of Supervisors to an- 
other City and County agency. The Chief Admin- 
istrative Officer, and each City and County agency 
assigned responsibilities by or pursuant to this 
Chapter, shall have all such authority as may be 
reasonably necessary to carry out those respon- 
sibilities. WTiile retaining overall responsibility 
for administration of the program, the Chief 
Administrative Officer shall utilize the services 
of the Bureau of Building Inspection of the 
Department of Public Works in connection with 
the code enforcement aspects of the program; 
and the services of the Real Estate Department 
in connection with the rehabilitation financing 
aspects of the program. The Chief Administra- 
tive Officer may also request the assistance of 
any other City and County agency in meeting his 
or her responsibilities under this program. (Added 
by Ord. 482-80, App. 10/17/80) 



SEC. 40.8. ADOPTION OF OBJECTIVE 
SELECTION CRITERIA FOR 
SYSTEMATIC ENFORCEMENT OF 
REHABILITATION STANDARDS. 

(a) The Chief Administrative Officer shall 
adopt objective selection criteria for the system- 
atic enforcement of rehabilitation standards in 
all multi-family buildings. Such criteria shall be 
recommended to the Chief Administrative Of- 
ficer by the Superintendent of the Bureau of 
Building Inspection. 

(b) Criteria for the order of selection of 
multi-family buildings to be inspected shall be 
based upon the seriousness and frec[uency of 
occurrence of Housing Code and other City and 
County Code violations constituting a threat to 
public health and safety. Such hazardous condi- 
tions include, but are not limited to, lack of 
proper egress, improper use and occupancy, stor- 
age of flammable or combustible materials, and 
lack of safety devices such as smoke and heat 
detection devices, fire alarms, stairway enclo- 
sures, and sprinkler systems. Data on hazardous 
conditions in these buildings shall be obtained 
from a survey conducted by the Division of 
Apartment Plouse and Hotel Inspection of the 
Bureau of Building Inspection which was con- 
ducted in 1969 and which is periodically up- 
dated. 

(c) Before the Superintendent of the Bu- 
reau of Building Inspection recommends the 
adoption of objective selection criteria, the Su- 
perintendent shall conduct a public hearing at 
which the objective selection criteria will be 
discussed. 

(d) At least 10 days preceding the hearing, 
the Superintendent shall make proposed objec- 
tive selection criteria available for public inspec- 
tion at the Bureau of Building Inspection. 

(e) At least 10 days preceding the hearing, 
notice of the hearing shall be published once in a 
newspaper of general circulation published in 



3791 



Sec. 40.8. 



San Francisco - Administrative Code 



3792 



San Francisco. The notice shall state the time, 
place and purpose of the hearing. The notice 
shall also state that the Superintendent's pro- 
posed objective selection criteria are available 
for public inspection at the Bureau of Building 
Inspection. 

(f) After the Chief Administrative Officer 
has adopted objective selection criteria, the fol- 
lowing procedure must be observed before the 
Chief Administrative Officer can change the cri- 
teria: 

(1) A copy of the proposed change shall be 
made available for public inspection at the Bu- 
reau of Building Inspection at least 10 days 
before a proposed change can become final. 

(2) Notice of the proposed change must be 
published once in a newspaper of general circu- 
lation published in San Francisco at least 10 
days before the proposed change can become 
final. The notice shall state the nature of the 
proposed change and the fact that the text of the 
proposed change is available for public inspec- 
tion at the Bureau of Building Inspection. 

(3) The Superintendent of the Bureau of 
Building Inspection shall mail a copy of the 
notice specified in Section 40.8(f)(2) to all per- 
sons who have submitted a request in writing to 
the Superintendent that they receive copies of 
such notices. (Added by Ord. 482-80, App. 10/17/ 
80) 

SEC. 40.9. INSPECTION OF BUILDINGS 
IN NEIGHBORHOOD STRATEGY AREAS. 

(a) An owner of a multi-family building 
located in a Neighborhood Strategy Area may 
request that his or her building be inspected, for 
the purpose of determining if it meets rehabili- 
tation standards, in advance of the time that 
such building would ordinarily be inspected pur- 
suant to the criteria established in Section 40.8. 
The owner shall submit a written request for this 
inspection to the Superintendent of the Bureau 
of Building Inspection. After receiving such a 
request, the Superintendent shall have the build- 
ing inspected and, if the building is found to be 
substandard, the owner will be eligible to apply 
for a loan pursuant to this Chapter. 



(b) Such inspections will be binding on the 
owner of the building even if this owner is later 
found not to be eligible for a loan pursuant to this 
Chapter. 

(c) The Superintendent of the Bureau of 
Building Inspection shall include notice of the 
availability of the inspection program described 
in this Section in the annual billing for the 
permit of occupancy license fee for multi-family 
buildings. Such notice shall state that owners 
who request these inspections will be eligible to 
apply for rehabilitation financing pursuant to 
this part. The notice shall plainly describe the 
Superintendent's evaluation of the possibility 
that in the next succeeding year funds will not be 
available to fund all applications meeting the 
program criteria in a timely fashion, and that in 
such case priority for buildings qualifying under 
this Section will be given to those buildings in 
which 50 percent or more of the units, as shown 
in the loan application, are such that the units 
meet the definition of "low income housing stock" 
in Chapter 13 (Subdivision Code) of the Munici- 
pal Code of the City and County of San Fran- 
cisco. The notice shall also state that the bound- 
aries of Neighborhood Strategy Areas will be 
available for public inspection at the Bureau of 
Building Inspection. The notice shall also state 
that the inspections will be binding on the own- 
ers. (Added by Ord. 482-80, App. 10/17/80) 

SEC. 40.10. RULES AND REGULATIONS. 

(a) The Chief Administrative Officer shall 
adopt such rules and regulations as he or she 
may deem appropriate to carry out the provi- 
sions of this Chapter. A copy of all such rules and 
regulations shall be available for review by the 
public during regular business hours in the office 
of the Chief Administrative Officer, the office of 
the Clerk of the Board of Supervisors, the De- 
partment of Public Works, and in every other 
of^ce established for the purpose of carrying out 
this program. 

(b) Before the Chief Administrative Officer 
adopts these rules and regulations, the Chief 
Administrative Officer or his or her delegate 
shall conduct a public hearing at which the rules 
and regulations will be discussed. 



3793 



Housing Code Enforcement Loan Program 
Administration of Program 



Sec. 40.13. 



(c) At least 10 days preceding the hearing, 
the Chief Administrative Officer shall make the 
proposed rules and regulations available for pub- 
lic inspection at the Bureau of Building Inspec- 
tion. 

(d) At least 10 days preceding the hearing, 
notice of the hearing shall be published once in a 
newspaper of general circulation published in 
San Francisco. The notice shall state the time, 
place and purpose of the hearing. The notice 
shall also state that the proposed rules and 
regulations are available for public inspection at 
the Bureau of Building Inspection. 

(e) After the Chief Administrative Officer 
has adopted rules and regulations, the following 
procedure must be observed before the Chief 
Administrative Officer can change the rules and 
regulations: 

(1) A copy of the proposed change shall be 
made available for public inspection at the Bu- 
reau of Building Inspection at least 10 days 
before a proposed change can become final. 

(2) Notice of the proposed change must be 
published once in a newspaper of general circu- 
lation published in San Francisco at least 10 
days before the proposed change can become 
final. The notice shall state the nature of the 
proposed change and the fact that the text of the 
proposed change is available for public inspec- 
tion at the Bureau of Building Inspection. 

(3) The Superintendent of the Bureau of 
Building Inspection shall mail a copy of the 
notice specified in Section 40.9(e)(2) to all per- 
sons who have submitted a request in writing to 
the Superintendent that they receive copies of 
such notices. (Added by Ord. 482-80, App. 10/17/ 
80) 

SEC. 40.11. MANAGEMENT OF BOND 
PROCEEDS. 

Unless provided otherwise in any bond reso- 
lution adopted pursuant to the provisions of this 
Chapter, the Chief Administrative Officer, acting 
on the recommendation of the Controller: 

(a) May invest and reinvest both the bond 
proceeds and the revenues from the financing of 
residential rehabilitation; and 



(b) May manage fiscally the proceeds of 
bonds issued for the purpose of establishing a 
residential rehabilitation loan fund; or 

(c) Together with the Purchaser may enter 
into contractual arramgement with private lend- 
ing institutions or trust companies to manage 
the residential rehabilitation loan fund, includ- 
ing investment and reinvestment of the funds, 
disbursements from the fund and collection of 
revenues. (Added by Ord. 482-80, App. 10/17/80) 

SEC. 40.12. RECOMMENDATION OF 
FEES, CHARGES, AND INTEREST RATES 
ON FINANCING. 

The Chief Administrative Officer, acting on 
the advice of the Controller, shall recommend to 
the Board of Supervisors for adoption: 

(a) The fees, charges and interest rates which 
will be charged participating parties in connec- 
tion with financing residential rehabilitation; 
and 

(b) Revisions, as necessary, of the fees, 
charges and interest rates levied on participat- 
ing parties, consistent with the standards adopted 
by the Board of Supervisors pursuant to Section 
40.6. (Added by Ord. 482-80, App. 10/17/80) 

SEC. 40.13. NOTICE OF DEFAULTS AND 
FORECLOSURES. 

When there is a default on a conventional 
HELP loan secured by a deed of trust naming the 
City and County as a beneficiary and the prop- 
erty becomes subject to foreclosure procedures, 
the Chief Administrative Officer shall so inform 
the Loan Committee. (Added by Ord. 482-80, 
App. 10/17/80) 



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San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE IV: LOAN COMMITTEE 



Sec. 40.14. Loan Committee — Membership. 
Sec. 40.15. Loan Committee — Functions. 

SEC. 40.14. LOAN COMMITTEE- 
MEMBERSHIP. 

There shall be a Loan Committee, whose 
members shall serve without compensation, con- 
sisting of the following members, all of whom 
shall be residents of the City and County: 

(a) One individual, with permanent resi- 
dence as a tenant in the City and County, ap- 
pointed by the Mayor. 

(b) One individual, with permanent resi- 
dence as a tenant in the City and County, ap- 
pointed by the President of the Board of Super- 
visors. 

(c) One individual appointed by the Control- 
ler. 

(d) One individual qualified in the field of 
real estate lending and financing who shall be 
appointed by the Chief Administrative Officer. 

(e) One individual who is a permanent em- 
ployee of the Real Estate Department. (Added by 
Ord. 482-80, App. 10/17/80) 

SEC. 40.15. LOAN COMMITTEE- 
FUNCTIONS. 

The functions of the Loan Committee are as 
follows: 

(a) The Loan Committee shall periodically 
review the rules and procedures and standards 
for the granting of residential rehabilitation loans 
and shall recommend changes as needed to the 
Chief Administrative Officer. 

(b) The Loan Committee shall review and 
recommend approval or denial of applications 
required to be considered by the Loan Commit- 
tee by or pursuant to this Chapter. 

(c) The Loan Committee shall operate in a 
manner consistent with by-laws which shall be 
developed by the Loan Committee and approved 
by the Chief Administrative Officer, and the 



recommendation of approval or denial of loan 
applications shall be in accordance with the 
requirements contained in, or adopted pursuant 
to, this Chapter. (Added by Ord. 482-80, App. 
10/17/80) 



[The next page is 3815] 



3805 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE V: REHABILITATION FINANCING 



Sec. 40.16. Eligibility for Loan. 

SEC. 40.16. ELIGIBILITY FOR LOAN. 

(a) Each owner of a residential multi-family 
building inspected pursuant to a systematic pro- 
gram of enforcement of rehabilitation standards 
or pursuant to the voluntary inspection program 
defined in Section 40.9 of this Chapter is eligible 
for a loan, provided the owner demonstrates to 
the satisfaction of the Chief Administrative Of- 
ficer the ability to repay such a loan; applies for 
the loan within a time period to be designated by 
the Chief Administrative Officer; and can meet 
the other requirements of this Chapter. The 
property owner shall agree to all conditions of 
the loan agreement as a prerequisite to obtain- 
ing a loan. No elective officer of the state or any 
of its subdivisions shall be eligible to receive a 
loan under the provisions of this Chapter. 

(b) No owner shall be eligible for a loan 
under the program if the owner has in the 12 
months preceding the date of application: 

(1) Attempted to, or intentionally did cause 
any tenant to vacate his or her premises in the 
subject building, other than for those causes 
defined as just cause by the San Francisco Rent 
Stabilization and Arbitration Ordinance or other 
ordinance or general law limitation on cause for 
eviction as may be applicable to the building; or 

(2) Attempted to, or intentionally did cause 
any tenant to vacate his or her premises in the 
subject property by the use of coercion, intimida- 
tion, harassment, undue influence, or any means 
contrary to law; or 

(3) Caused the conversion of any residential 
hotel unit to any other use or any apartment unit 
to tourist hotel unit use in the subject building 
subsequent to November 23, 1979 in violation of 
the San FrEincisco Residential Hotel Unit Con- 
version, Demolition and Change in Use Ordi- 
nance, or such other ordinance or law as may be 
applicable to the conversion of such units at the 
time of such conversion. 



Any owner found ineligible for any of the 
above reasons may not reapply for a loan under 
this Chapter for a period of 18 months from the 
date of final denial. Each loan applicant shall be 
required as part of the application process to sign 
an affidavit swearing under penalty of perjury 
that he or she has not engaged in any of the 
prohibited practices specified herein during the 
12 months preceding the date of application. 

(c) In any year in which the Chief Adminis- 
trative Officer determines that in the next suc- 
ceeding year funds will not be available to fund 
all applications meeting the program criteria in 
a timely fashion, priority shall be given to those 
buildings inspected pursuant to Section 40.8, 
and second priority to those buildings qualifying 
under Section 40.9 in which 50 percent or more 
of the units, as shown in the loan application, are 
such that the units meet the definition of "low 
income housing stock" in Chapter 13 (Subdivi- 
sion Code) of the Municipal Code of the City and 
County of San Francisco. 

(d) Any owner who is denied a loam by the 
Chief Administrative Officer on the grounds that 
the owner does not meet eligibility requirements 
may appeal the decision to the Loan Committee. 
Any tenant of a building for which approval has 
been granted may appeal the approval on grounds 
of ineligibility under Subdivision (b) of this Sec- 
tion. The Loan Committee shall review the ap- 
plication for a loan and make a recommiendation 
regarding approval or denial to the Chief Admin- 
istrative Officer. 

In reviewing the application, the Loan Com- 
mittee shall give due consideration to the need 
for the loan to be made in order to accomiplish the 
purposes of the pro^jram, the risks to the City 
and County of granting the loan, and the ability 
of the property to support the loan as well as the 
reasons for approval or denial of the application 
by the Chief Administrative Officer. If the Chief 
Administrative Officer does not accept the rec- 
ommendation of the loan committee, he or she 



3815 



Sec. 40.16. San Francisco -Administrative Code 3816 

shall give written reasons for the refusal to 
approve or deny the loan. (Added by Ord. 482-80, 
App. 10/17/80) 



[The next page is 3825] 



ARTICLE VI: FINANCING LIMITATIONS 



Sec. 40.17. Maximum Indebtedness on 

Property. 
Sec. 40.18. Maximum Amount of Loan. 
Sec. 40.19. Limitation Based on Fair 

Market Value of Work. 

SEC. 40.17. MAXIMUM INDEBTEDNESS 
ON PROPERTY. 

Outstanding loans on the property to be 
rehabilitated, including the amount of the loan 
for rehabilitation, shall not exceed 80 percent of 
the anticipated after-rehabilitation value of the 
property to be rehabilitated, as determined by 
the Chief Administrative Officer, except that the 
Chief Administrative Officer may authorize loans 
of up to 95 percent of the anticipated after- 
rehabilitation value of the property if: 

(a) Such loans are made for the purpose of 
rehabilitating the property for residential pur- 
pose; 

(b) There is demonstrated need for such 
higher limit; and 

(c) There is a high probability that the 
value of the property will not be impaired during 
the term of the loan. (Added by Ord. 482-80, App. 
10/17/80) 

SEC. 40.18. MAXIMUM AMOUNT OF 
LOAN. 

The loan shall be made only for the purpose 
of meeting rehabilitation standards and the maxi- 
mum amounts shall be as follows: Three units, 
$10,000 per unit; four or more units, $7,500 per 
unit; and guest rooms, as defined in Section 
203.7 of the Housing Code, $2,500 per unit. The 
Chief Administrative Officer may approve a loan 
in excess of these amounts following guidelines 
established by the Chief Administrative Officer 
only where such excess financing will result in 
the creation of additional housing units by mak- 
ing habitable a multi-family building which has 
been abandoned or vacated for a period of one 



year prior to the date of application, or by the 
conversion of a multi-family building or portion 
thereof from commercial use to noncommercial 
use; provided, that in no case may the loan 
exceed $17,500 per unit for dwelling units and 
$11,500 per unit for ^^est rooms. (Added by Ord. 
482-80, App. 10/17/80) 

SEC. 40.19. LIMITATION BASED ON 
FAIR MARKET VALUE OF WORK. 

(a) Prior to granting of any loan over $20,000 
under this Chapter, a qualified estimator hired 
by the borrower will make an on-premises inspec- 
tion of the applicant's property and certify, in 
writing, the fair market value of the recom- 
mended work as detailed in the job specifica- 
tions. 

(b) Where loan is under $20,000 and low bid 
exceeds estimate of building inspector by 10 
percent, the borrower will hire a qualified esti- 
mator to certify, in writing, the fair market value 
of the work as detailed in the job specifications. 

(c) A qualified estimator is a person: 

(1) Who is not a City and County employee; 
but 

(2) Who is approved by the Chief Adminis- 
trative Officer because he or she is qualified and 
experienced in the area of residential rehabilita- 
tion. 

The estimator shall operate under the direc- 
tion of the Director of the Real Estate Depart- 
ment. 

(d) No loan will be granted in an amount 
exceeding 110 percent of the fair market value of 
the recommended work as specified in the job 
specifications as certified in writing by a quali- 
fied estimator, or higher than the lowest bid 
received, whichever is less, without the approval 
of the Chief Administrative Officer. 

(e) The Chief Administrative Officer shall, 
semi-annually, direct a report to the Board of 
Supervisors setting forth a list of the loans which 



3825 



Sec. 40.19. San Francisco -Administrative Code 3826 

were in excess of 110 percent of fair market value 
pursuant to the provisions of Subdivision (d) 
giving the reasons for approval in each case. 
(Added by Ord. 482-80, App. 10/17/80) 



[The next page is 3835] 



ARTICLE VII: TERMS OF LOANS 



Sec. 40.20. 



Sec. 40.21. 

Sec. 40.22. 

Sec. 40.23. 

Sec. 40.24. 

Sec. 40.25. 



Sec. 40.26. 
Sec. 40.27. 
Sec. 40.28. 



Maximum Repayment Period 

for Loan; Initiation of Payments 

after Rehabilitation. 

Security for Loan. 

Impound Account. 

Transfer of Loans. 

Interest Rates and Other Loan 

Charges. 

Tenant Moving Costs and Right 

of First Refusal; Rent for 

Reoccupied Units. 

Open Housing. 

Equal Employment Opportunity. 

Enforcement of Loan Provisions. 



SEC. 40.20. MAXIMUM REPAYMENT 
PERIOD FOR LOAN; INITIATION OF 
PAYMENTS AFTER REHABILITATION. 

(a) The maximum repajmient period for a 
HELP loan shall be 20 years or three-fourths of 
the economic life of the property, whichever is 
less. 

(b) Subject to budgetary and fiscal limita- 
tions, and approval of the Chief Administrative 
Officer, payments on a HELP loan may not be 
required to comnience prior to completion of the 
improvements for which such loan is made; pro- 
vided, that pajnnents shall begin no later than 
six months after an initial disbursement from 
proceeds of the loan. The monthly payment due 
under the loan shall be adjusted to insure repay- 
ment of the principal and interest due on the 
loan within the time required by Paragraph (a) 
of this Section. (Added by Ord. 482-80, App. 
10/17/80) 

SEC. 40.21. SECURITY FOR LOAN. 

Unless provided otherwise in any bond reso- 
lution issued pursuant to the provisions of this 
Chapter, every HELP loan shall be secured by a 



deed of trust naming the City and County as 
beneficiary of the trust. (Added by Ord. 482-80, 
App. 10/17/80) 

SEC. 40.22. IMPOUND ACCOUNT. 

If the Chief Administrative Officer deems it 
desirable and necessary to effectuate the pur- 
poses of the program that an impound account be 
required to assure taxes, insurance, or a main- 
tenance reserve, he or she may include such a 
requirement in any HELP loan agreement. (Added 
by Ord. 482-80, App. 10/17/80) 

SEC. 40.23. TRANSFER OF LOAlNfS. 

(a) The unpaid amount of a HELP loan 
shall be due and payable upon sade or transfer of 
the ownership of the property, except that assign- 
ment of the unpaid amount of such a loan to a 
purchaser or transferee may be permitted when 
the Chief Administrative Officer determiines that 
hardship conditions exist and the prospective 
owner qualifies for a loan on the basis of current 
loan eligibility standards. 

(b) If the holder of a HELP loan is dissatis- 
fied with the Chief Administrative Officer's re- 
fusal to permit transfer of the unpaid amount of 
the loan because of a finding that hardship 
conditions do not exist, the holder of the loan 
may request review of the Chief Administrative 
Officer's determination by the Loan Committee. 
If the Loan Committee recommends a finding 
that hardship conditions exist, the Chief Admin- 
istrative Officer shall either accept that recom- 
mendation or give written reasons for the refusal 
to accept it. 

(c) Hardship conditions exist: 

(1) When the owner of property subject to a 
HELP loan is forced to sell the propert}/^ and the 
property cannot be sold without a substantial 
loss of equity unless the loan is transferable; 



3835 



Sec. 40.23. 



San Francisco - Administrative Code 



3836 



(2) When the income of a prospective pur- 
chaser of property subject to a HELP loan is at or 
below income standards to be established by the 
Chief Administrative Officer; or 

(3) When the prospective purchaser is un- 
able to obtain financing in the private sector 
because of age, disability or sex; or 

(4) When transfer of the loan is necessary to 
prevent significant rent increases. 

(d) The Chief Administrative Officer shall 
develop standards which shall be applied in 
making determinations required under this Sec- 
tion. (Added by Ord. 482-80, App. 10/17/80) 

SEC. 40.24. INTEREST RATES AND 
OTHER LOAN CHARGES. 

The interest rate and any other charges to 
the borrower for a HELP loan shall be estab- 
lished pursuant to the provisions of Sections 40.5 
and 40.11, and may include: 

(a) The interest charged the City and County 
on funds borrowed to carry out the provisions of 
this Chapter; 

(b) An amount needed to provide for pos- 
sible defaults on outstanding loans; 

(c) An amount to cover the cost of issuing 
loans; 

(d) An amount to cover the cost of servicing 
loan accounts; 

(e) An amount to cover the costs of issuing 
bonds; 

(f) An amount to cover the costs of the 
administration of the loans including, but not 
limited to, loan officer services, title report, and 
credit report. (Added by Ord. 482-80, App. 10/17/ 
80) 

SEC. 40.25. TENANT MOVING COSTS 
AND RIGHT OF FIRST REFUSAL; RENT 
FOR REOCCUPIED UNITS. 

(a) Every loan application for the HELP 
program shall report the current rents of each 
unit in the building for which assistance is 
sought. 



(b) In the case of dwelling units which the 
Superintendent of the Bureau of Building Inspec- 
tion certifies as dwelling units which must be 
vacated because of residential rehabilitation to 
be performed on the structure where they are 
located with assistance from the HELP program: 

(1) The property owner is responsible for 
paying the reasonable cost of moving expenses 
only of each low and moderate income household 
displaced from such a unit; maximum moving 
expense shall not be in excess of $500; 

(2) Any tenant who must vacate such a 
dwelling unit shall have the right of first refusal 
to occupy that unit when rehabilitation of the 
property is completed; 

(3) Notwithstanding any other provisions of 
the San Francisco Rent Stabilization and Arbi- 
tration Ordinance, or any rules or regulations 
promulgated in accordance with that ordinance, 
and notwithstanding the provisions of any suc- 
cessor ordinance or law regulating rent increases 
which is in effect at the time the HELP loan is 
made, the rent charged to any tenant who next 
occupies such a unit following rehabilitation may 
not exceed the rent which could be charged a 
reoccupying tenant under the terms of such 
ordinance or law in effect at the time the HELP 
loan is made (the prior rent adjusted in accor- 
dance with Section 37.9(a)(ll) of Chapter 37 of 
the San Francisco Administrative Code or com- 
parable provisions of the ordinance in effect at 
the time the HELP loan is made). 

For purposes of Section 37.9(a)(ll) the reha- 
bilitation cost which is permitted to be passed on 
as a rent increase to any tenant who chooses to 
occupy a dwelling unit after rehabilitation of the 
property has been completed shall be amortized 
over the original amortization period of the HELP 
loan. 

(4) The property owner shall give each ten- 
ant living in such a unit written notice, 30 days 
prior to the date the tenant must vacate, of the 
right to have no more than $500 of the reason- 
able cost of moving the household paid, if the 
household qualifies as a low and moderate in- 
come household, and of the right to first refusal 
to reoccupy the unit at the prior rent adjusted in 



3837 



Housing Code Enforcement Loan Program - Terms of Loans 



Sec. 40.28. 



accordance with Section 37.9(a)(ll) of Chapter 
37 of the San Francisco Administrative Code, or 
successor provision, as modified in clause (3) 
above. A copy of the notice specified in clause (3) 
shall be forwarded to the Chief Administrative 
Officer. 

(c) The requirements of Subdivision (b) shall 
be included in the terms of each HELP loan 
agreement. 

(d) The anticipated cost of moving house- 
holds affected by residential rehabilitation may 
be included in the property owner's loan. 

(e) The determinations of qualification as a 
low and moderate income household and of the 
amount of moving expenses due a tenant shall be 
made by the Central Relocation Service of the 
Mayor's Office using the standard schedule for 
such computation. (Added by Ord. 482-80, App. 
10/17/80) 

SEC. 40.26. OPEN HOUSING. 

All HELP agreements shall provide that so 
long as the loan or any portion of it is outstand- 
ing the property shall be open, upon sale or 
rental of all or any portion thereof, to all persons 
regardless of race, sex, marital status, color, 
religion, national origin or ancestry. (Added by 
Ord. 482-80, App. 10/17/80) 

SEC. 40.27. EQUAL EMPLOYMENT 
OPPORTUNITY. 

All HELP loan agreements shall provide that 
all contracts and subcontracts let for residential 
rehabilitation financed under this Chapter are to 
be let without regard to the race, sex, marital 
status, color, religion, national origin or ancestry 
of the contractor or subcontractor. Further, all 
HELP loan agreements shall provide that any 
contractor or subcontractor engaged in residen- 
tial rehabilitation financed under this Chapter 
must agree to provide equal opportunity for 
employment without regard to race, sex, marital 
status, color, religion, national origin or ancestry. 
(Added by Ord. 482-80, App. 10/17/80) 



SEC. 40.28. ENFORCEMENT OF LOAN 
PROVISIONS. 

The provisions of Section 40.26 and the pro- 
visions of Section 40,27 as they relate to enforce- 
ment of nondiscrimination on the basis of race, 
sex, marital status, color, religion, national ori- 
gin or ancestry, are enforceable by the Human 
Rights Commission. The enforcement powers, 
responsibilities and procedures of the Human 
Rights Commission set forth in Chapters 12A 
and 12B of the San Francisco Administrative 
Code shall be applicable to carry out the 
Commission's responsibilities under this Chap- 
ter. (Added by Ord. 482-80, App. 10/17/80) 



[The next page is 3847] 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



ARTICLE VIII: MISCELLANEOUS PROVISIONS 



Sec. 40.29. Limitations on Conversions. 
Sec. 40.30. Relocation Assistance. 
Sec. 40.31. Private Cause of Action. 
Sec. 40.32. Review. 
Sec. 40.33. Construction and Effect of 
Chapter. 

Sec. 40.34. Severability. 

SEC. 40.29. LIMITATIONS ON 
CONVERSIONS. 

(a) HELP loans are intended to be used only 
for the purpose of maintaining eligible multi- 
family buildings for their current use. No HELP 
loan may be used for rehabilitation for the pur- 
pose of conversion of a multi-family building, or 
portion thereof, to a condominium; for conver- 
sion to a tourist hotel unit, as defined in the 
Residential Hotel Unit Conversion Demolition 
and Change in Use Ordinance; or for conversion 
to commercial use; nor may any owner cause any 
such conversion while the loan is still outstand- 
ing. 

(b) No building, or portion thereof, may be 
converted- to such condominium, tourist hotel 
unit, or commercial use for a period of five years 
following the recording of a HELP loan on the 
building, nor for a period of five years following 
the assumption of such a HELP loan within the 
first five-year period, whether intentionally or 
unintentionally, and whether by the original 
borrower or a successor in interest. To assure 
notice and enforceability of this requirement as 
affects successors in interest, no HELP loan 
shall be made without the recording of deed 
restrictions as provided in this paragraph. 

(c) Every HELP loan agreement shall in- 
clude agreement to comply with Subdivisions (a) 
and (b) of this Section. 

(d) No City and County agency may ap- 
prove any building permit or subdivision map 
which would permit violation of this Section. 



(e) Every borrower, or successor obligor, of a 
HELP loan shall annually file with the Bureau of 
Building Inspection an affidavit swearing under 
penalty of perjury that no conversion prohibited 
by this Section has occurred during the preced- 
ing year. 

(f) Except as provided in Subdivision (b) of 
this Section, nothing in this Section shall pre- 
vent conversions of multi-family buildings as- 
sisted under the progTam following repayment of 
the entire balance due on the HELP loan. (Added 
by Ord. 482-80, App. 10/17/80) 

SEC. 40.30. RELOCATION ASSISTANCE. 

(a) In addition to moving costs, a tenant 
displaced because of rehabilitation financed pur- 
suant to this Chapter of the dwelling unit or 
building in which the tenant lives may be eligible 
for relocation assistance under the City and 
County's Special Rent Assistance Program under 
the Central Relocation Service of the Mayor's 
Office. 

(b) If state or federal funds are available for 
relocation assistance, such funds shall be pro- 
vided to eligible recipients pursuant to State law. 
If such funds are available, the Chief Adminis- 
trative Officer shall notify all owners and ten- 
ants of buildings rehabilitated with assistance of 
financing issued pursuant to this Chapter of the 
availability of various types of relocation ben- 
efits, the eligibility requirements for relocation 
benefits and the procedures for obtaining reloca- 
tion benefits; and the terms and conditions un- 
der which the relocation costs shall be reim- 
bursed to the City and County by the owner. 

(c) Current and continuing information on 
the availability and cost of comparable housing 
and comparable commercial properties and loca- 
tions will be maintained and available to the 
public at the Central Relocation Services Office. 

(d) Information concerning federal and State 
housing programs, disaster loan and other pro- 
grams administered by the Small Business Ad- 



3847 



Sec. 40.30. 



San Francisco - Administrative Code 



3848 



ministration, and other federal or State pro- 
grams offering assistance to displaced persons, 
will be available at the Central Relocation Ser- 
vices Office. 

(e) Persons who believe that they have been 
discriminated against in the rehousing process 
will be referred to the Human Rights Commis- 
sion for either action or referral to the appropri- 
ate law enforcement agencies. 

(f) Central Relocation Services shall be re- 
sponsible for administration of any relocation 
benefits provided pursuant to this Section. (Added 
by Ord. 482-80, App. 10/17/80) 



SEC. 40.34. SEVERABILITY. 

If any provision of this Chapter, or the appli- 
cation thereof to any person or circumstance, is 
held invalid, the validity of the remainder of the 
chapter and the applicability of such provisions 
to other persons and circumstances shall not be 
affected thereby (Added by Ord. 482-80, App. 
10/17/80) 



SEC. 40.31. PRIVATE CAUSE OF 
ACTION. 

Any tenant of any dwelling unit benefited by 
any HELP loan whose rent may be increased, 
who may be displaced, or who may otherwise be 
injured by any violation of £iny term of the HELP 
loan agreement shall be entitled to institute a 
private action: 

(a) To enjoin continued violation of the HELP 
loan agreement; and 

(b) To recover any actual damages suffered 
as well as costs and attorneys fees. (Added by 
Ord. 482-80, App. 10/17/80) 

SEC. 40.32. REVIEW. 

This ordinance shall be reviewed by the Board 
of Supervisors within two years of the date on 
which it takes effect. At such time the Board of 
Supervisors shall conduct hearings regarding 
the continuation, revision, or termination of the 
program and as to whether this Chapter should 
continue in effect, be amended, or be repealed. 
(Added by Ord. 482-80, App. 10/17/80) 



SEC. 40.33. CONSTRUCTION AND 
EFFECT OF CHAPTER. 

The provisions of this Chapter, being neces- 
sary for the welfare of the City and County of 
San Francisco and its inhabitants, shall be lib- 
erally construed to effect its purposes. (Added by 
Ord. 482-80, App. 10/17/80) 



[The next page is 3859] 



CHAPTER 41: RESIDENTIAL HOTEL UNIT CONVERSION .l\ND DEMOLITION 



Sec. 41.1. Title. 

Sec. 41.2. Purpose. 

Sec. 41.3. Findings. 

Sec. 41.4. Definitions. 

Sec. 41.5. Applicability of this Chapter. 

Sec. 41.6. Initial Status Determination. 

Sec. 41.7. Statements of Exemption; 

Applicability of this Chapter. 
Sec. 41.8. Requirements for Nonprofit 

Organizations. 
Sec. 41.9. Records of Use. 

Sec. 41.10. Annual Unit Usage Report. 
Sec. 41.11. Administration. 
Sec. 41.12. Permit to Convert. 
Sec. 41.13. One-for-one Replacement. 
Sec. 41.14. Mandatory Denial of Permit to 

Convert. 
Sec. 41.15. Approval and Issuance of 

Permit to Convert. 
Sec. 41.16. Appeal of Denial or Approval of 

Permit to Convert. 
Sec. 41.17. Rights of Permanent Residents. 
Sec. 41.18. Demolition. 
Sec. 41.19. Temporary Change of 

Occupancy. 
Sec. 41.20. Unlawful Conversion; Remedies; 

Fines. 
Sec. 41.21. Annual Review of Residential 

Hotel Status. 
Sec. 41.22. Construction. 

SEC. 41.1. TITLE. 

This Chapter shall be known as the Residen- 
tial Hotel Unit Conversion and Demolition Ordi- 
nance. (Added by Ord. 121-90, App. 4/12/90) 

SEC. 41.2. PURPOSE. 

It is the purpose of this ordinance to benefit 
the general public by minimizing adverse impact 
on the housing supply and on displaced low 



income, elderly, and disabled persons resulting 
from the loss of residential hotel units through 
their conversion and demolition. This is to be 
accomplished by establishing the status of resi- 
dential hotel units, by regulating the demolition 
and conversion of residential hotel units to other 
uses, and by appropriate administrative and 
judicial remedies. (Added by Ord. 121-90, App. 
4/12/90) 

SEC. 41.3. FINDINGS. 

The Board of Supervisors finds that: 

(a) There is a severe shortage of decent, 
safe, sanitary and affordable rental housing in 
the City and Countj^ of San Francisco and this 
shortage affects most severely the elderly, the 
disabled and low-income persons. 

(b) The people of the City and County of 
San Francisco, cognizant of the housing shortage 
of San Francisco, on November 4, 1980, adopted 
a declaration of policy to increase the city's 
housing supply by 20,000 units. 

(c) Many of the elderly, disabled and low- 
income persons and households reside in residen- 
tial hotel units. 

(d) A study prepared by the Department of 
City Planning estimated that there v/ere only 
26,884 residential hotel units in the City in 
December of 1979, a decrease of 6,098 such units 
from 1975. Since enactment of this Chapter, 
residential hotel units have continued to de- 
crease, at a slower rate: in 1981, there were 
20,466 residential hotel units as defined by this 
Chapter; in 1988, there were 18,723 residential 
hotel units, a decrease of 1,743 over a period of 7 
years. The decrease is caused by vacation, con- 
version or demolition of residential hotel units. 
Continued vacation, conversion or demolition of 
residential hotel units will aggravate the exist- 
ing shortage of affordable, safe and sanitary 
housing in the City and County of San Francisco. 



3859 



Sec. 41.3. 



San Francisco - Administrative Code 



3860 



(e) As a result of the removal of residential 
hotel units from the rental housing market, a 
housing emergency exists within the City and 
County of San Francisco for its elderly, disabled 
and low-income households. 

(f) Residential hotel units are endangered 
housing resources and must be protected. 

(g) The Board of Supervisors and the Mayor 
of the City and County of San Francisco recog- 
nized this housing emergency and enacted an 
ordinance which established a moratorium on 
the demolition or conversion of residential hotel 
units to any other use. The moratorium ordi- 
nance became effective on November 21, 1979. 

(h) The conversion of residential hotel units 
affects those persons who are least able to cope 
with displacement in San Francisco's housing 
market. 

(i) It is in the public interest that conver- 
sion of residential hotel units be regulated and 
that remedies be provided where unlawful con- 
version has occurred, in order to protect the 
resident tenants and to conserve the limited 
housing resources. 

(j) The tourist industry is one of the major 
industries of the City and County of San Fran- 
cisco. Tourism is essential for the economic well 
being of San Francisco. Therefore, it is in the 
public interest that a certain number of moder- 
ately priced tourist hotel units be maintained 
especially during the annual tourist season be- 
tween May 1st and September 30th. 

(k) Tourist activity has increased steadily 
in San Francisco since 1983. There are currently 
approximately 23,000 tourist hotel units in the 
City and over 3,000 additional such units will be 
added by 1988 through new construction. How- 
ever, there are presently only 18,723 residential 
hotel units and this number is not increasing. In 
addition, rents for residential hotel units have 
risen an average of 23 percent annually since 
1980, making such units less and less affordable 
as a housing resource for the elderly, disabled 
and low-income persons. Since the adoption of 
this ordinance, hotel owners have begun to leave 
residential units vacant during the non-tourist 
season (October 1st — ^April 30th) in order to rent 



these units to tourists at high daily rental rates 
during the tourist season (May 1st — September 
30th). This activity, which further reduces the 
available supply of low and moderate income 
housing in San Francisco, is not presently pro- 
hibited under this Chapter. In order to assure 
that residential hotel owners do not continue to 
withhold these available residential units from 
prospective permanent residents during the non- 
tourist season, it is necessary to restrict the 
tourist season rental of vacant residential hotel 
units. Such a restriction will not interfere with 
San Francisco's tourism, which remains essen- 
tial to the economic well-being of the City. 

(1) Since enactment of this Chapter, it has 
become apparent that portions of this Chapter 
were difficult and extremely costly to interpret 
and enforce, resulting in an inability to fulfill the 
essential intent of this Chapter and to prevent 
illegal conversions. 

(m) Since enactment of this Chapter, resi- 
dential units have been converted to tourist 
units and the hotel operators have paid the 40 
percent in-lieu fee to the City. This amount, 40 
percent of the cost of construction of comparable 
units plus site acquisition cost, has not been 
adequate to provide replacement units. Federal, 
state and local funds were incorrectly assumed 
at that time to be available and sufficient to 
make up the shortfall between the 40 percent 
in-lieu fee and actual replacement costs. For 
example, in 1979 the federal government was 
spending 32 billion dollars on housing and is 
spending only 7 billion dollars in 1989. 

(n) Certain uses provide both living accom- 
modation and services, such as health care, per- 
sonal care and counseling, to residents of the 
City. Examples of such uses are hospital, skilled 
nursing facility, AIDS hospice, intermediate care 
facility, asylum, sanitarium, orphanage, prison, 
convent, rectory, residential care facility for the 
elderly, and community care facility. Such facili- 
ties are often operated in building owned or 
leased by non-profit organizations and provide 
needed services to the City's residents. To subject 
such facilities to the provisions of this Chapter 
may deter future development of such facilities. 



3861 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.4. 



It is desirable that such facihties exist and the 
City should encourage construction and opera- 
tion of such facilities. 

(o) In addition, a form of housing facilities 
called "transitional housing" provides housing 
and supportive services to homeless persons and 
families and is intended to facilitate the move- 
ment of homeless individuals and families to 
independent living or longer term supportive 
residences in a reasonable amount of time. Tran- 
sitional housing has individual living quarters 
with physical characteristics often similar to a 
residential hotel (i.e. accommodations which pro- 
vide privac};^ to residents) and provides a source 
of interim housing for homeless individuals and 
families seeking to live independently. 

(p) The City's public, quasi-public and pri- 
vate social agencies serving the elderly and needy 
persons often find it difficult to immediately 
locate suitable housing units for such persons 
returning to independent living after hospital- 
ization or upon leaving skilled-nursing or inter- 
mediate care facilities within a short time after 
their discharge from a health facility. Such per- 
sons often will require minimum supervision 
and other interim social service support. The 
provision of a stable number of housing units for 
such emergency needs until permanent housing 
can be secured and supportive services arranged 
are necessary and desirable for the City. Emer- 
gency housing will have physical characteristics 
similar to "transitional housing" and is often 
intended to be occupied for a period of less than 
one month. 

(q) The City also wishes to provide positive 
incentive to encourage residential hotel owners 
and operators to comply with the terms of this 
Chapter. Hotel owners have expressed a need to 
rent certain residential units on a short term 
basis during the winter months. In an effort to 
address this need and to encourage compliance 
with this Chapter, the City wishes to provide an 
opportunity to hotel owners who have complied 
with the terms of this Chapter to rent a limited 
number of residential units to tourists during 
the winter months. (Added by Ord. 121-90, App. 
4/12/90) 



SEC. 41.4. DEFINITIONS. 

(a) Certificate of Use. Following the ini- 
tial unit usage and annual unit usage determi- 
nation pursuant to the provisions of Sections 
41.6 and 41.10 below, every hotel shall be issued 
a certificate of use specifying the number of 
residential and tourist units herein. 

(b) Comparable Unit. A unit which is simi- 
lar in size, services, rental amount and facilities, 
and which is located within the existing neigh- 
borhood or within a neighborhood with similar 
physical and socioeconomic conditions. 

(c) Conversion. The change or attempted 
change of the use of a residential unit as defined 
in subsection (q) below to a tourist use, or the 
elimination of a residential unit or the voluntary 
demolition of a residential hotel. However, a 
change in the use of a residential hotel unit into 
a non-commercial use which serves only the 
needs of the permanent residents, such as 
resident's lounge, storeroom or common area, 
shall not constitute a conversion within the mean- 
ing of this Chapter. 

(d) Disabled Person. A recipient of disabil- 
ity benefits. 

(e) Elderly Person. A person 62 years of 
age or older. 

(f) Emergency Housing. A project which 
provides housing and supportive services to eld- 
erly or low-income persons upon leaving a health 
facility and which has its primary purpose of 
facilitating the return of such individuals to 
independent living. The emergency housing shall 
provide services and living quarters pursuant to 
Section 41.13 herein and may be provided as 
part of a "transitional housing" project. 

(g) Hotel. Any building containing six or 
more guest rooms intended or designed to be 
used, or which are used, rented or hired out to be 
occupied or which are occupied for sleeping pur- 
poses and dwelling purposes by guests, whether 
rent is paid in money, goods, or services. It 
includes motels, as defined in Chapter XII, Part 
II of the San Francisco Municipal Code (Housing 
Code), but does not include any jail, health 
facilities as defined by Section 1250 of the Health 
and Safety Code, asylum, sanitarium, orphan- 



Sec. 41.4. 



San Francisco - Administrative Code 



3862 



age, prison convent, rectory, residential care fa- 
cility for the elderly as defined in Section 1569.2 
of the Health and Safety Code, residential facili- 
ties as defined in Section 1502 of the Health and 
Safety Code or other institution in which human 
beings are housed or detained under legal re- 
straint, or any private club and nonprofit orga- 
nization in existence on September 23, 1979; 
provided, however, that nonprofit organizations 
which operated a residential hotel on September 
23, 1979 shall comply with the provisions of 
Section 41.8 herein. 

(h) Interested Party. A permanent resi- 
dent of a hotel, or his or her authorized repre- 
sentative, or a former tenant of a hotel who 
vacated a residential unit within the past 90 
days preceding the filing of complaint or court 
proceeding to enforce the provisions of this Chap- 
ter. Interested party shall also mean any non- 
profit organization, as defined in Section 41.4(k), 
which has the preservation or improvement of 
housing as a stated purpose in its articles of 
incorporation and/or bylaws. 

(i) Low-Income Household. A household 
whose income does not exceed 60 percent of the 
median income for the San Francisco Standard 
Metropolitan Statistical Area as published by 
the United States Department of Housing and 
Urban Development and Housing and Commu- 
nity Development Act of 1974. 

(j) Low-Income Housing. Residential units 
whose rent may not exceed 30 percent of the 
gross monthly income of a low-income household 
as defined in subsection (i) above. 

(k) Nonprofit Organization. An entity ex- 
empt from taxation pursuant to Title 26, Section 
501 of the United States Code. 

(1) Operator. An operator includes the les- 
see or any person or legal entity whether or not 
the owner, who is responsible for the day-to-day 
operation of a residential hotel and to whom a 
hotel license is issued for a residential hotel. 

(m) Owner. Owner includes any person or 
legal entity holding any ownership interest in a 
residential hotel. 



(n) Permanent Resident. A person who 
occupies a guest room for at least 32 consecutive 
days. 

(o) Posting or Post. Where posting is re- 
quired by this Chapter, material shall be posted 
in a conspicuous location at the front desk in the 
lobby of the hotel, or if there is no lobby, in the 
public entranceway. No material posted may be 
removed by any person except as otherwise pro- 
vided in this Chapter. 

(p) Residential Hotel. Any building or 
structure which contains a residential unit as 
defined in (q) below unless exempted pursuant to 
the provisions of Sections 41.5 or 41.7 below. 

(q) Residential Unit. Any guest room as 
defined in Section 203.7 of Chapter XH, Part U of 
the San Francisco Municipal Code (Housing Code) 
which had been occupied by a permanent resi- 
dent on September 23, 1979. Any guest room 
constructed subsequent to September 23, 1979 
or not occupied by a permanent resident on 
September 23, 1979 shall not be subject to the 
provisions of this Chapter; provided however, if 
designated as a residential unit pursuant to 
Section 41.6 of this Chapter or constructed as a 
replacement unit, such residential units shall be 
subject to the provisions of this Chapter. 

(r) Tourist Hotel. Any building containing 
six or more guest rooms intended or designated 
to be used for commercial tourist use by provid- 
ing accommodation to transient guests on a 
nightly basis or longer. A tourist hotel shall be 
considered a commercial use pursuant to City 
Planning Code Section 216(b) and shall not be 
defined as group housing permitted in a residen- 
tial area under City Planning Code Section 209.2. 

(s) Tourist Unit. A guest room which was 
not occupied on September 23, 1979, by a perma- 
nent resident or is certified as tourist unit pur- 
suant to Sections 41.6, 41.7 or 41.8 below. Des- 
ignation as a tourist unit under this Chapter 
shall not supersede any limitations on use pur- 
suant to the Planning Code. 

(t) Transitional Housing. A project which 
provides housing and supportive services to home- 
less persons and families or low-income house- 
holds at risk of becoming homeless which has as 



3863 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.6. 



its purpose facilitating the movement of home- 
less individuals or at-risk low-income house- 
holds to independent living within a reasonable 
amount of time. The transitional housing shall 
provide ser\dces and living quarters as approved 
by the Planning Commission that are similar to 
the residential unit being replaced pursuant to 
Section 41.13 herein and shall comply with all 
relevant provisions of City ordinances and regu- 
lations. (Added by Ord. 121-90, App. 4/12/90) 

SEC. 41.5. APPLICABILITY OF THIS 
CHAPTER. 

The provisions of this Chapter shall not ap- 
ply to: 

(a) The change in use of a residential unit 
where the unit has been found to be unfit for 
human habitation prior to November 23, 1979 
and ordered to be vacated by the Department of 
Public Health; or 

(b) A hotel wherein 95 percent of the guest 
rooms were tourist units on September 23, 1979; 
or 

(c) A unit which rented for over $1,000 per 
month on September 23, 1979; or 

(d) A hotel in which 95 percent of the total 
number of guest rooms rented for more than 
$1,000 per month on September 23, 1979; or 

(e) A building which was unlawfully con- 
verted to a rooming house or hotel in violation of 
the provisions of the City Planning Code; or 

(D A building which meets the require- 
ments of Section 41.7(c) below for a claim of 
exemption for partially-completed conversions; 
or 

(g) A building which meets the require- 
ments of Section 41.7(b) below for a claim of 
exemption for low-income housing; or 

(h) A building which is lawfully approved 
by the City after September 23, 1979, and is not 
a replacement unit pursuant to Section 41.13 
herein, so long as it is operated by a public entity 
or a nonprofit organization as a jail, health 
facilities as defined by Section 1250 of the Health 
and Safety Code, asylum, sanitarium, orphan- 
age, prison, convent, rectory, residential care 
facility for the elderly as defined in Section 



1569.2 of the Health and Safety Code, residen- 
tial facilities as defined in Section 1502 of Health 
and Safety Code, or other institution in which 
human beings are housed or detained under 
legal restraint. (Added by Ord. 121-90, App. 
4/12/90) 

SEC. 41.6. INITIAL STATUS 
DETERMINATION. 

(a) Filing of Initial Status Determina- 
tion; Time Limit. Within 30 calendar days of 
the mailing date of the summary of the ordi- 
nance and the prescribed repoi'ting forms, the 
ow ner or operator of each hotel shall file either a 
statement of exemption, a claim of exemption 
based on low-income housing, a claim of exemp- 
tion based on partially completed conversion, or 
an initial unit usage report as specified below. All 
filing shall be accorapanied by supporting evi- 
dence. However, upon application by an owner or 
operator and upon showing a good cause there- 
for, the Director of the Department of Building 
Inspection may grant an extension of time not to 
exceed 30 days for filing. Owner or operator shall 
post a notice on the day of filing that a copy of the 
initial status determination document filed with 
the Director of the Department of Building In- 
spection is available for inspection between the 
hours of 9:00 a.m. and 5:00 p.m. Monday through 
Friday. 

(b) Filing of Initial Unit Usage Report. 

All hotels not covered by the exemptions in 
Sections 41.5, 41.7 or 41.8 must file an initial 
unit usage report containing the following: 

(1) The number of residential and tourist 
units in the hotel as of September 23, 1979; 

(2) The designeition by room number and 
location of the residential units and tourist units 
as of seven calendar days prior to the date of 
filing the report; 

(3) The total number of residential and tour- 
ist rooms in the hotel as of seven calendar days 
prior to date of filing the report. 

(c) Insufficient Filing. If the Director of 
the Department of Building Inspection or his 
designee determines that additional infbrmation 
is needed to make a determination, the Director 



Sec. 41.6. 



San Francisco - Administrative Code 



3864 



shall request the additional information in writ- 
ing. The owner or operator shall furnish the 
requested information within 15 calendar days 
upon receipt of the written request. Owner or 
operator shall immediately post a notice that a 
copy of the requested information is available for 
inspection between the hours of 9:00 a.m. and 
5:00 p.m. Monday through Friday at the Depart- 
ment of Building Inspection. If the requested 
information is not furnished, all the guest rooms 
not supported by evidence shall be deemed to be 
residential units. 

(d) Certification of Units. The Director of 
the Department of Building Inspection shall re- 
view the information and accompanying support- 
ing data. A certified copy of hotel tax returns for 
the calendar year 1979 may be used to establish 
the number of tourist units and the Director of 
the Department of Building Inspection or the 
Director's designee may personally inspect units 
to establish the number of tourist units. If, in the 
opinion of the Director of the Department of 
Building Inspection, the initial unit usage report 
is supported by adequate supporting evidence, 
the Director shall certify the number of residen- 
tial and tourist units within 90 calendar days of 
its submission. The owner or operator shall have 
the burden of proving the number of tourist units 
claimed by a preponderance of evidence. 

Notwithstanding any other provisions in this 
Chapter, if an owner or operator took possession 
of the hotel operation after September 23, 1979 
and before June 15, 1981, and if the owner or 
operator can demonstrate that good cause exists 
why he/she cannot obtain supporting evidence 
from the previous owner or operator to file the 
initial report, the owner or operator shall base 
his/her filing on information available to him/her 
two weeks after he/she took possession of the 
hotel; any units which are vacant on that date 
shall be allocated equally between tourist and 
residential uses; provided that a permanent resi- 
dent may rebut this presumption by clear and 
convincing evidence. 

After the Director of the Department of Build- 
ing Inspection certifies the number of residential 
and tourist units, the Director shall issue a 



certificate of use. The Certificate of Use shall be 
posted permanently in the lobby or entranceway 
of the hotel. 

(e) Failure to File Statement of Exemp- 
tion, Claim of Exemption or Initial Unit 
Usage Report. If no initial unit usage report, or 
statement of exemption, or a claim of exemption 
based on partially completed conversion, or a 
claim of exemption based on low-income housing 
for all of the guest rooms, is filed for a hotel 
within the time set forth in Section 41.6(a), the 
Director of Department of Building Inspection 
shall mail a notice to the owner or operator of 
record by registered or certified mail stating that 
all the rooms in the hotel shall be deemed 
residential units unless the owner or operator 
files unit usage report within 10 calendar days of 
the mailing date of said notice and that a late 
filing fee of $50 will be assessed in addition to the 
fee set forth in Section 41.11 of this Chapter. If 
the owner or operator fails to submit a unit 
usage report within 10 calendar days after noti- 
fication by the Department of Building Inspec- 
tion, a certificate of use for residential units only 
shall be issued. 

(f) Appeal of Initial Determination. An 

owner or operator may appeal the initial unit 
status determination by the Director of the De- 
partment of Building Inspection provided that 
there was no challenge pursuant to the provi- 
sions of subsection (g) below, and further pro- 
vided that an appeal is filed within 10 calendar 
days of the mailing of the certification. If an 
appeal is filed, a copy of the notice of appeal shall 
be posted by the owner or operator and a hearing 
pursuant to the provisions of Section 41.8(b) 
shall be scheduled. 

(g) Challenge; Standing; Statute of Limi- 
tation. Challenges to the information contained 
in the initial status determination report filed by 
the owner or operator may be filed by an inter- 
ested party in writing provided that it is submit- 
ted within 15 calendar days from the date the 
report to the Department of Building Inspection 
is filed. Upon receipt of a challenge, a hearing 
shall be held by the Director of the Department 
of Building Inspection or his designee pursuant 



3865 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.7. 



to the provisions of Section 41.11(b). The owner 
or operator shall have the burden of proving by a 
preponderance of evidence that the information 
filed is correct. 

(h) Reporting Forms for Initial Unit Us- 
age Report. Compliance by any party or by the 
City of San Francisco with notice, filing, chal- 
lenge, designation of unit and certification re- 
quirements of Ordinance 330-81 regarding the 
initial status of units shall satisfy similar require- 
ments set forth in this Chapter and all such 
notices, filings, challenges, designations or cer- 
tificates shall have the same force and effect as if 
made pursuant to this subsection. (Added by 
Ord. 121-90, App. 4/12/90; amended by Ord. 
134-01, File No. 001926, App. 7/6/2001) 

SEC. 41.7. STATEMENTS OF 
EXEMPTION; APPLICABILITY OF THIS 
CHAPTER. 

(a) Statement of Exemption Based on 
Inapplicability of This Chapter. Any hotel 
claiming that this Chapter does not apply, under 
the provisions of Sections 41.5(a) through 41.5(d), 
shall file a statement of exemption specifying the 
basis for the exemption. Any hotel claiming ex- 
emption under the provisions of Sections 41.5(b) 
through 41.5(d) shall also state the total number 
of guest rooms and the number of residential 
hotel units with monthly rent over $1,000 per 
month. 

(b) Claim of Exemption Based on Low- 
Income Housing. To qualify for a claim of 
exemption based on low-income housing, the 
units to be rehabilitated meet the following re- 
quirements; 

(1) A claim for this exemption has been filed 
and the requisite fees paid to the Department of 
Building Inspection no later than 60 calendar 
days after the effective date of this ordinance; 

(2) With the exception of ground floor com- 
mercial space, the entire building must be com- 
pletely occupied as low-income housing; 

(3) The Director of the Department of Build- 
ing Inspection finds that the proposed elimina- 
tion of a unit is necessary to comply with Build- 
ing Code and Housing Code requirements; and 



(4) Alternate guest rooms are made avail- 
able within the building to the displaced perma- 
nent residents; or 

(5) In those circumstances where it is nec- 
essary to relocate a permanent resident off site, 
the permanent resident shall receive the actual 
moving expenses and the difference between the 
rent at the time of relocation and the rent of the 
temporary housing during the period of rehabili- 
tation. 

(6) The owner or operator and successors in 
interest shall continue to maintain all units in 
the rehabilitated hotel as low-income housing for 
25 years. A deed restriction on such use shall be 
submitted to the City Attorney's Office for ap- 
proval. An approved copy of the deed restriction 
shall be forwarded to the Director of the Depart- 
ment of Building Inspection ands the original 
shall be filed with the Recorder by the owner or 
operator. 

(c) Claim of Exemption Based on Par- 
tially Completed Conversion. A claim of ex- 
emption based on partially completed conversion 
shall not be approved until and unless owner or 
operator shows that all of the following require- 
ments are met: 

(1) An application for partially completed 
conversion was filed no later than 60 calendar 
days after the effective date of this ordinance; 

(2) The owner or operator has coiTimenced 
work on extensive Capital Improvements and 
Rehabilitation Work prior to November 23, 1979, 
as defined in Section 37.2 of the San Francisco 
Administrative Code (the San Francisco Rent 
Stabilization and Arbitration Ordinance) and 
has completed such work on at least 35 percent 
of the units intended to be converted or has 
expended 40 percent of the total sum budgeted 
for said work; 

(3) The owner or operator or previous owner 
or operator shall have clearly demonstrated his/ 
her intention to convert all of the residential 
units in the subject building to tourist units as of 
November 23, 1979. Satisfactory evidence of in- 
tention to convert may be demonstrated by the 
following factors, including but not limited to: 

(A) Whether an architect has been engaged 
to prepare plans and specifications; or 



Sec. 41.7. 



San Francisco - Administrative Code 



3866 



(B) Whether apphcations for construction 
work have been received; or 

(C) Whether apphcations for the necessary 
permits have been submitted to all relevant city 
departments; or 

(D) Whether a building permit has been 
issued. 

(4) Each permanent resident displaced by 
the conversion is offered relocation assistance as 
set forth in Section 41.17(b) below; and 

(5) For each vacant residential unit con- 
verted, but not occupied by a permanent resi- 
dent, a sum of $250 per unit not to exceed a total 
of $10,000 shall be deposited in the San Fran- 
cisco Residential Hotel Preservation Account of 
the Repair and Demolition Fund established 
pursuant to Section 203.1 of the San Francisco 
Building Code (being Chapter 1, Article 2, Part II 
of the San Francisco Municipal Code) to be used 
exclusively for the repair, purchase and rehabili- 
tation of residential hotel units by agencies of 
the City and County of San Francisco and to be 
administered by the Department of Public Works. 

(d) Consistent with Planning Code Section 
183, any unit deemed to be a tourist unit which 
has remained continuously vacant for three years 
following the zoning change in a zoning district 
not allowing tourist hotels shall lose its noncon- 
forming status, and may be opened only for 
residential hotel or group housing uses. (Added 
by Ord. 121-90, App. 4/12/90; amended by Ord. 
134-01, File No. 001926, App. 7/6/2001) 

SEC. 41.8. REQUIREMENTS FOR 
NONPROFIT ORGANIZATIONS. 

(a) Initial Unit Usage Report. Within 90 
days of the adoption of this amended Chapter, 
the Department of Building Inspection shall no- 
tify all nonprofit organizations operating hotels 
that the nonprofit organization must comply 
with the Initial Status Determination provisions 
of Section 41.6 herein. 

(b) Annual Unit Usage Report. All non- 
profit organizations operating hotels with resi- 
dential units shall comply with the provisions of 
Section 41.10 herein in the event that the status 



of the units in the hotel changes from the desig- 
nation contained in the Initial Unit Usage Re- 
port. 

(c) One-for-One Replacement. If a non- 
profit organization seeks to demolish residential 
units or remove residential units from housing 
use, or sells or otherwise transfers the building 
containing residential use, it shall comply with 
the provisions of Section 41.13 of this Chapter. 

(d) Applicability of this Chapter. This 
chapter shall not apply to a hotel which has a 
certificate of use for all residential units but 
contained no permanent residents on September 
23, 1979, provided that the hotel is owned, leased 
or operated by a nonprofit organization at the 
time this exemption is sought. The owner, opera- 
tor or lessee of such a hotel must file with the 
Director of the Department of Building Inspec- 
tion evidence to support such exemption. If the 
exemption is approved, the Director shall issue a 
certificate of use designating all the hotel's units 
as tourist units; provided, however, that the 
certificate shall not be issued until the hotel 
owner, operator or lessee has paid any penalties 
imposed under Section 41.6(e) or Section 41.10(f) 
or (g), or released any liens imposed under Sec- 
tion 41.20(d). (Added by Ord. 121-90, App. 4/12/ 
90; amended by Ord. 134-01, File No. 001926, 
App. 7/6/2001) 

SEC. 41.9. RECORDS OF USE. 

(a) Daily Log. Each residential hotel shall 
maintain a daily log containing the status of 
each room, whether it is occupied or vacant, 
whether it is used as a residential unit or tourist 
unit, the name under which each adult occupant 
is registered, and the amount of rent charged. 
Each hotel shall also provide receipts to each 
adult occupant, and maintain copies of the re- 
ceipts, showing: the room number; the name of 
each adult occupant; the rental amount and 
period paid for; and any associated charges im- 
posed and paid, including but not limited to 
security deposits and any tax. The daily log and 
copies of rent receipts shall be available for 
inspection pursuant to the provision of Section 
41.11(c) of this Chapter upon demand by the 
Director of the Department of Building Inspec- 



3867 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.10. 



tion or the Director's designee or the City 
Attorney's Office between the hours of 9 a.m. and 
5 p.m., Monday through Friday unless the Direc- 
tor of the Department of Building Inspection or 
the City Attorney's Office reasonably believe 
that further enforcement efforts are necessary 
for specified residential hotels, in which case the 
Department of Building Inspection or the City 
Attorney's Office shall notify the hotel owner or 
operator that the daily logs and copies of rent 
receipts shall be available for inspection between 
the hours of 9 a.m. and 7 p.m. Each hotel shall 
maintain the daily logs and copies of rent re- 
ceipts for a period of no less than 24 months. 

In addition to the investigative powers and 
enforcement mechanisms prescribed in this Chap- 
ter, the City Attorney's Office shall have the 
authority to take further investigative action 
and bring additional enforcement proceedings 
including the immediate California Civil Code 
Section 1940.1. 

(b) Weekly Report. Following the initial 
determination, an owner or operator of residen- 
tial units shall post on each Monday before 12 
noon the following information: 

( 1 ) The number of tourist units to which the 
owner or operator is currently entitled and the 
date the certificate of use was last issued; 

(2) The number of guest rooms which were 
used as tourist units each day of the preceding 
week. Evidence of compliance with requirements 
imposed hereunder shall be preserved by the 
owner or operator for a period of not less than 
two years £ifter each posting is required to be 
made. The owner or operator shall permit the 
Director of the Department of Building Inspec- 
tion or his designee to inspect the hotel records 
and other supporting evidence to determine the 
accuracy of the information posted. (Added by 
Ord. 121-90, App. 4/12/90; amended by Ord. 
134-01, File No. 001926, App. 7/6/2001; Ord. 
195-05, File No. 051031, App. 7/29/2005) 



SEC. 41.10. 
REPORT. 



ANNUAL UNIT USAGE 



(a) Filing. On November 1st of each year 
every hotel owner or operator subject to this 
Chapter shall file with the Department of Build- 
ing Inspection an /yinual Unit Usage Report 
containing the following information: 

(1) The total number of units in the hotel as 
of October 15th of the year of filing; 

(2) The number of residential and tourist 
units as of October 15th of the year of filing; 

(3) The number of vacant residential units 
as of October 15th of the year of filing; if more 
than 50 percent of the units are vacant, explain 
why; 

(4) The average rent for the residential ho- 
tel units as of October 15th of the year of filing; 

(5) The number of residential units rented 
by week or month as of October 15th of the year 
of filing; and 

(6) The designation by room nuraber and 
location of the residential units and tourist units 
as of October 15th of the year of filing. Owner or 
operator shall maintain such designated units as 
tourist or residential units for the following year 
unless owner or operator notifies in writing the 
Department of Building Inspection of a redesig- 
nation of units; owner or operator maj'^ redesig- 
nate units throughout the year provided they 
notify the Department of Building Inspection in 
writing by the next business day follov/ing such 
redesignation and maintain the proper number 
of residential and tourist units at all times. The 
purpose of this provision is to simplify enforce- 
ment efforts while providing owner or operator 
with reasonable and sufficient flexibility in des- 
ignation and renting of rooms; 

(7) The nature of services provided to the 
permanent residents and whether there has been 
an increase or decrease in the services so pro- 
vided; 

(8) A copy of the Daily Log, showing the 
number of units which are residential, tourist or 
vacant on October 1st, February 1st, May 1st 
and August 1st of the year of filing. 



Sec. 41.10. 



San Francisco - Administrative Code 



3868 



(b) Notice of Annual Unit Usage Re- 
port. On the day of filing, the owner or operator 
shall post a notice that a copy of the Annual Unit 
Usage Report submitted to the Department of 
Building Inspection is available for inspection 
between the hours of 9:00 a.m. and 5:00 p.m. 
Monday through Friday, which notice shall re- 
main posted for 30 days. 

(c) Extension of Time for Filing. Upon 
application by an owner or operator and upon 
showing good cause therefor, the Director of the 
Department of Building Inspection may grant 
one extension of time not to exceed 30 days for 
said filing. 

(d) Certificate of Annual Unit Usage Re- 
port. After receipt of a completed Annual Unit 
Usage Report, the Department of Building In- 
spection shall issue a certified acknowledgment 
of receipt. 

(e) Renewal of Hotel License and Issu- 
ance of New Certificate of Use. As of the 

effective date of this Chapter, no hotel license 
may be issued to any owner or operator of a hotel 
unless the owner or operator presents with his/ 
her license application a certified acknowledg- 
ment of receipt from the Department of Building 
Inspection of the Annual Unit Usage Report for 
the upcoming year. 

(f) Insufficient Filing; Penalties. The Di- 
rector of the Department of Building Inspection 
authorized to assess a penalty as set forth below 
for insufficient filing, with interest on the pen- 
alty accruing at the rate of one and one-half 
percent per full month, compounded monthly 
from the date the penalty is due as stated in the 
Director's written notification below. 

If the Director or the Director's designee 
determines that additional information is needed 
to make a determination, he shall send both the 
owner and operator a written request to furnish 
such information within 15 calendar days of the 
mailing of the written request. The letter shall 
state that if the requested information is not 
furnished in the time required, the residential 
and tourist units shall be presumed to be un- 
changed from the previous year and that the 
Director shall impose a $500 penalty for failure 



to furnish the additional information within the 
15-day period. If the Director does not timely 
receive the information, the Director shall notify 
both the owner and operator, by mail, that the 
Director is imposing a $500 penalty which must 
be paid within 30 days of the mailing of the 
notification, and that interest on the penalty 
shall accrue from the expiration of the 30 days at 
the rate of one and one-half percent per full 
month, compounded monthly. The written noti- 
fication shall state that if the penalty is not paid, 
a lien to secure the amount of the penalty, plus 
the accrued interest, will be recorded against the 
real property pursuant to the provisions of Sec- 
tion 41.20(d) of this Chapter. 

(g) Failure to File Annual Unit Usage 
Report; Penalties. The Director of the Depart- 
ment of Building Inspection is authorized to 
assess penalties as set forth below for failure to 
file an Annual Unit Usage Report, with interest 
on penalties accruing at the rate of one and 
one-half percent per full month, compounded 
monthly from the date the penalty is due as 
stated in the Director's notification below. 

If the owner or operator fails to file an 
Annual Unit Usage Report, the Director or the 
Director's designee shall notify the owner and 
operator by registered or certified mail and shall 
post a notice informing the owner and operator 
that unless submission of the Annual Unit Usage 
Report and application for renewal of the hotel 
license is made within 15 calendar days of the 
mailing of the letter, the residential and tourist 
units shall be presumed to be unchanged from 
the previous year, and the Director shall impose 
a penalty of $300 per month of each month the 
annual report is not filed. If the Director does not 
receive the report the Director shall notify both 
the owner and operator, by mail that the Direc- 
tor is imposing the appropriate penalty, as pro- 
rated, which must be paid within 30 days of the 
mailing of the notification and that interest on 
the penalty shall accrue from the expiration of 
the 30 days at the rate of one and one-half 
percent per full month, compounded monthly. 
The written notification shall state that if the 
penalty is not paid, a lien to secure the amount of 
the penalty, plus the accrued interest, will be 



3869 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.11. 



recorded against the real property pursuant to 
the provisions of Section 41.20(d) of this Chapter, 
(h) Appeal of Annual Usage Determina- 
tion. An owner or operator may appeal the 
annual unit usage determination by the Director 
of the Department of Building Inspection pro- 
vided that there was no challenge pursuant to 
the provisions of subsection (i) below, and further 
provided that an appeal is filed within 20 calen- 
dar days from the date of annual unit usage 
determination. If an appeal is filed, a copy of the 
notice of appeal shall be posted by the owner or 
operator and a hearing pursuant to the provi- 
sions of Section 41.11(b) shall be scheduled. 

(i) Challenge; Standing; Statute of Limi- 
tation. Any interested party may file a challenge 
to the information contained in the annual unit 
usage report filed by the owner or operator 
provided that such a challenge is in writing and 
is submitted within 30 calendar days from the 
date the report to the Department of Building 
Inspection is filed. Upon receipt of a challenge, a 
hearing pursuant to the provisions of Section 
41.11(b) shall be scheduled. The owner or opera- 
tor shall have the burden of proving by a prepon- 
derance of evidence that the information filed is 
correct. (Added by Ord. 121-90, App. 4/12/90; 
amended by Ord. 134-01, File No. 001926, App. 
7/6/2001) 

SEC. 41.11. ADMINISTRATION. 

(a) Fees. The owner or operator shall pay 
the following filing fees to the Department of 
Building Inspection to cover its costs of investi- 
gating and reporting on eligibility. See Section 
333.2, Hotel Conversion Fee Schedule, Part II, 
Chapter 1 of the San Francisco Municipal Code 
(Building Code) for the applicable fees. The party 
that brings an unsuccessful challenge to a report 
pursuant to this Article shall be liable for the 
change in Section 333.2, Hotel Conversion Fee 
Schedule. Unsuccessful Challenge, Part II, Chap- 
ter 1 of the San Francisco Municipal Code (Build- 
ing Code). Fees shall be waived for an individual 
who files an affidavit under penalty of perjury 
stating that he or she is an indigent person who 
cannot pay the filing fee without using money 
needed for the necessities of life. 



SEE SAN FRANCISCO MUNICIPAL. CODE 

(BUILDING CODE) SECTION 333.2 

HOTEL CONVERSION FEE SCHEDULE 

(b) Hearing. 

(1) Notice of Hearing. Whenever a hear- 
ing is required or requested in this Chapter, the 
Director of the Depairtment of Building Inspec- 
tion shall, within 45 calendar days, notify the 
owner or operator of the date, time, place and 
nature of the hearing by registered or certified 
mail. The Director of the Department of Building 
Inspection shall appoint a hearing officer. Notice 
of such a hearing shall be posted by the Depart- 
ment of Building Inspection. The owner or opera- 
tor shall state under oath at the hearing that the 
notice remained posted for at least 10 calendar 
days prior to the hearing. Said notice shall state 
that all permanent residents residing in the 
hotel may appear and testify at the public hear- 
ing, provided that the Department of Building 
Inspection is notified of such an intent 72 hours 
prior to the hearing date. 

(2) Pre-hearing Submission. No less than 
three working days prior to any hearing, parties 
to the hearing shall submit written information 
to the Department of Building Inspection includ- 
ing, but not limited to, the following: the request 
or complaint, the statement of issues to be deter- 
mined by the Hearing Officer; and a statement of 
the evidence upon which the request or com- 
plaint is based. 

(3) Hearing Procedure. If more than one 
hearing for the same hotel is required, the Direc- 
tor of the Department of Building Inspection 
shall consolidate all of the appeals and chal- 
lenges into one hearing; however, if a civil action 
has been filed pursuant to the provisions of 
Section 41.20(e) of the Chapter, all hearings on 
administrative complaints of unlawful conver- 
sions involving the same hotel shall be abated 
until such time as final judgnient has been 
entered in the civil action; an interested party 
may file a complaint in intervention. The hear- 
ing shall be tape recorded. Any party to the 
appeal may, at his/bier own expense, cause the 
hearing to be recorded by a certified court re- 
porter. The hearing officer is empowered to issue 



Sec. 41.11. 



San Francisco - Administrative Code 



3870 



subpoenas upon application of the parties seven 
calendar days prior to the date of the hearing. 
During the hearing, evidence and testimony may 
be presented to the hearing officer. Parties to the 
hearing may be represented by counsel and have 
the right to cross-examine witnesses. All testi- 
mony shall be given under oath. Written decision 
and findings shall be rendered by the hearing 
officer within twenty working days of the hear- 
ing. Copies of the findings and decision shall be 
served upon the parties to the hearing by regis- 
tered or certified mail. A notice that a copy of the 
findings and decisions is available for inspection 
between the hours of 9:00 a.m. and 5:00 p.m. 
Monday through Friday shall be posted by the 
owner or operator. 

(4) Administrative Review. Unless other- 
wise expressly provided in this Chapter, any 
decision of the hearing officer shall be final 
unless a valid written appeal is filed with the 
Board of Permit Appeals within 15 days follow- 
ing the date of the hearing officer's written 
determination. Such an appeal may be taken by 
any interested party as defined by Section 41.4(g) 
herein. 

(c) Inspection. The Director of the Depart- 
ment of Building Inspection shall conduct, from 
time to time, on-site inspections of the daily logs, 
other supporting documents and units listed as 
vacant in the daily logs to determine if owner or 
operator has complied with the provisions of this 
Chapter. In addition, the Director of the Depart- 
ment of Building Inspection or the Director's 
designee shall conduct such an inspection as 
soon as practicable upon the request of a current 
or former occupant of the hotel. If upon such an 
inspection, the Director or Director's designee 
determines that an apparent violation of the 
provisions of this Chapter has occurred, he/she 
shall post a notice of apparent violation inform- 
ing the permanent residents of the hotel thereof 
or shall take action as set forth in Section 41.11(d) 
and (e) below. This notice shall remain posted 
until the Director of the Department of Building 
Inspection, or the Director's designee, deter- 
mines that the hotel is no longer in violation of 
the provisions of this Chapter. 



(d) Criminal Penalties for Violations. 

Any person or entity wilfully failing to maintain 
daily logs or provide and maintain receipts as 
provided in Sections 41.9(a) and (b) of this Chap- 
ter, or failing to post materials as provided in 
Sections 41.6(a), (c) and (f), 41.9(b), 41.10(b), (g) 
and (h), 41.11(b) (3), 41.12(b)(10) and 41.18(b) 
and (c) of this Chapter or wilfully providing false 
information in the daily logs shall be guilty of an 
infraction for the first such violation or a misde- 
meanor for any subsequent violation, and the 
complaint charging such violation shall specify 
whether the violation charged is a misdemeanor 
or an infraction. 

If charged as an infraction, the penalty upon 
conviction therefor shall be not less than $100 or 
more than $500. 

If charged as a misdemeanor, the penalty 
upon conviction therefor shall be a fine of not less 
than $500 or more than $1,000 or imprisonment 
in the county jail, not exceeding six months, or 
both fine and imprisonment. 

Every day such violation shall continue shall 
be considered as a new offense. 

For purposes of Sections 41.11(d) and (e), 
violation shall include, but not limited to, inten- 
tional disobedience, omission, failure or refusal 
to comply with any requirement imposed by the 
aforementioned Sections or with any notice or 
order of the Director of the Department of Build- 
ing Inspection or the Director of Public Works 
regarding a violation of this Chapter. 

(e) False Information Misdemeanor. It 

shall be unlawful for an owner or operator to 
wilfully provide false information to the Director 
of the Department of Building Inspection or the 
Director's designees. Any owner or operator who 
files false information shall be guilty of a misde- 
meanor. Conviction of a misdemeanor hereunder 
shall be punishable by a fine of not more than 
$500 or by imprisonment in the County Jail for a 
period not to exceed six months, or by both. 

(f) The Director of the Department of Build- 
ing Inspection may impose a penalty of $250 per 
violation for failure to maintain daily logs or for 
failure to provide receipts to occupants as re- 
quired under Section 41.9 above and for failure 



3871 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.12. 



to post materials as required under Sections 
41.6(a), (c) and (f), 41.9(b), 41.10(b), (g) and (h), 
41.11(b) (3), 41.12(b)(10), and 41.18(b) and (c). In 
order to impose such penalties, the Director shall 
notify both the owner and operator by certified 
mail that the Director is imposing the penalty or 
penalties, which must be paid within 30 days of 
the mailing of the notification. The written noti- 
fication shall state that if the penalty is not paid, 
a lien to secure the amount of the penalty will be 
recorded against the real property pursuant to 
the provisions of Section 41.20(d) of this Chapter, 
(g) Costs of Enforcement. The proceeds 
from the filing fees and civil fines assessed shall 
be used exclusively to cover the costs of investi- 
gation and enforcement of this ordinance by the 
City and County of San Francisco. The Director 
of the Department of Building Inspection shall 
annually report these costs to the Board of Su- 
pervisors and recommend adjustments thereof. 

(h) Inspection of Records. The Depart- 
ment of Building Inspection shall maintain a file 
for each residential hotel which shall contain 
copies of all applications, exemptions, permits, 
reports and decisions filed pursuant to the pro- 
visions of this Chapter. All documents main- 
tained in said files, except for all tax returns and 
documents specifically exempted from the Cali- 
fornia Public Record Act, shall be made available 
for public inspection and copying. 

(i) Promulgation of Rules and Regula- 
tions. The Director of the Department of Build- 
ing Inspection shall propose rules and regula- 
tions governing the appointment of an 
administrative officer and the administration 
and enforcement of this Chapter. After reason- 
able notice and opportunity to submit written 
comment are given, final rules and regulations 
shall be promulgated. (Added by Ord. 121-90, 
App. 4/12/90; amended by Ord. 134-01, File No. 
001926, App. 7/6/2001) 

SEC. 41.12. PERMIT TO CONVERT. 

(a) Any owner or operator, or his/her autho- 
rized agent, of a residential hotel may apply for a 
permit to convert one or more residential units 
by submitting an application and the required 
fee to the Central Permit Bureau. 



(b) The permit £ipplication shall contain the 
following information: 

(1) The name and address of the building in 
which the conversions are proposed; and 

(2) The names and addresses of all owners 
or operators of said building; and 

(3) A description of the proposed conversion 
including the nature of the conversion, the total 
number of units in the building, their current 
uses; and 

(4) The room numbers and locations of the 
units to be converted; and 

(5) Preliminary drawings showing the exist- 
ing floor plans and proposed floor plans; and 

(6) A description of the improvements or 
changes proposed to be constructed or installed 
and the tentative schedule for start of construc- 
tion; and 

(7) The current rental rates for each resi- 
dential unit to be converted; and 

(8) The length of tenancy of the permanent 
residents affected by the proposed conversion; 
and 

(9) A statement regarding how one-for-one 
replacement of the units to be converted will be 
accomplished, including the proposed location of 
replacement housing if replacement is to be 
provided off-site; and 

(10) A declaration under penalty of perjury 
from the owner or operator stating that he/she 
has complied with the provisions of Section 
41.14(b) below and his/her filing of a permit to 
convert. On the same date of the filing of the 
application, a notice that an application to con- 
vert has been filed shall be posted until a deci- 
sion is made on the application to convert. 

(c) Upon receipt of a completed application 
to convert or demolish, the Department of Build- 
ing Inspection shall send the application to the 
Department of City Planning for review and 
shall mail notice of such application to interested 
community organizations and such other per- 
sons or organizations who have previously re- 
quested such notice in writing. The notice shall 
identify the hotel requesting the permit, the 
nature of the permit, the proposal to fulfill the 



Sec. 41.12. 



San Francisco - Administrative Code 



3872 



replacement requirements of Section 41.13 herein, 
and the procedures for requesting a pubhc hear- 
ing. Owner or operator shall post a notice inform- 
ing permanent residents of such information. 

(d) Any interested party may submit a writ- 
ten request within 15 days of the date notice is 
posted pursuant to subsection (c) above to the 
City Planning Commission to schedule and con- 
duct a public hearing on the proposed conversion 
in order to solicit public opinion on whether to 
approve or deny a permit to convert or demolish 
residential units and to determine whether pro- 
posed replacement units are "comparable units" 
as defined in Section 41.4(b) herein. (Added by 
Ord. 121-90, App. 4/12/90; amended by Ord. 
134-01, File No. 001926, App. 7/6/2001) 

SEC. 41.13. ONE-FOR-ONE 
REPLACEMENT. 

(a) Prior to the issuance of a permit to 
convert, the owner or operator shall provide 
one-for-one replacement of the units to be con- 
verted by one of the following methods: 

(1) Construct or cause to be constructed a 
comparable unit to be made available at compa- 
rable rent to replace each of the units to be 
converted; or 

(2) Cause to be brought back into the hous- 
ing market a comparable unit from any building 
which was not subject to the provisions of this 
Chapter; or 

(3) Construct or cause to be constructed or 
rehabilitated apartment units for elderly, dis- 
abled or low-income persons or households which 
may be provided at a ratio of less than one-to- 
one; or construct or cause to be constructed 
transitional housing which may include emer- 
gency housing. The construction of any replace- 
ment housing under this subsection shall be 
evaluated by the City Planning Commission in 
accordance with the provisions of Section 303 of 
the City Planning Code, A notice of said City 
Planning Commission hearing shall be posted by 
the owner or operator 10 calendar days before 
the hearing; or 



(4) Pay to the City and County of San 
Francisco an amount equal to 80 percent of the 
cost of construction of an equal number of com- 
parable units plus site acquisition cost. All such 
payments shall go into a San Francisco Residen- 
tial Hotel Preservation Fund Account. The De- 
partment of Real Estate shall determine this 
amount based upon two independent appraisals; 
or 

(5) Contribute to a public entity or non- 
profit organization, who will use the funds to 
construct comparable units, an amount at least 
equal to 80 percent of the cost of construction of 
an equal number of comparable units plus site 
acquisition cost. The Department of Real Estate 
shall determine this amount based upon two 
independent appraisals. In addition to compli- 
ance with all relevant City ordinances and regu- 
lations, the public entity or nonprofit organiza- 
tion and the housing development proposal of 
such public entity or nonprofit organization shall 
be subject to approval by the Mayor's Office of 
Housing. 

(A) Such contribution shall be paid to the 
approved public entity or nonprofit organization 
in installments from an escrow account super- 
vised by the Mayor's Office of Housing, upon 
application by such public entity or nonprofit 
organization to the Mayor's Office of Housing, for 
specified expenditures, including but not limited 
to site acquisition costs, architect's fees, and 
construction costs; such payment shall be ap- 
proved by the Mayor's Office of Housing prior to 
release of funds. 

(B) The permit to convert shall be issued by 
the City when owner or operator deposits the full 
amount of funds in an escrow account described 
in subsection 41.13(a)(5)(A) above, or provides 
other form of nonrefundable security acceptable 
to the City Attorney and the Mayor's Office of 
Housing. 

(C) In the event that the public entity or 
nonprofit organization is unable to complete con- 
struction of the replacement housing, any un- 
paid amounts shall be released to the City. All 
such funds shall go into a San Francisco Resi- 
dential Hotel Preservation Fund Account. 



3873 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.13. 



(b) Any displaced permanent resident relo- 
cated to replacement units provided under Sub- 
division (a) above shall be deemed to have con- 
tinued his occupancy in the converted unit for 
the purpose of administering Subsection (k) of 
Section 37.2, San Francisco Administrative Code 
(San Francisco Rent Stabilization and Arbitra- 
tion Ordinance). 

(c) Any replacement units shall continue to 
be subject to the provisions of this Chapter. 

(d) In the event that a completed applica- 
tion for a permit to convert is filed by a hotel 
owner or operator no later than the effective date 
of this amended Chapter, and such hotel owner 
or operator elects to provide one-for-one replace- 
ment of the residential units pursuant to Section 
41.13(a) (4) or Section 41.13(a) (5) herein, the 
hotel owner or operator shall be obligated to pay 
to the City and County of San Francisco an 
amount equal to 40 percent of the cost of con- 
struction of an equal number of comparable 
units plus site acquisition cost, provided that 
such hotel owner or operator shall pay such 
amount to the City or provide to the City security 
for such pa.yment in a form satisfactory to the 
Mayor's Office of Housing and the City Attorney 
within 90 days following the date that the De- 
partment of Building Inspection determines that 
the application for a permit to convert is com- 
plete, or, if necessary, 10 days following final 
action, including any appeals, by the Planning 
Commission or appellate body, or 10 days follow- 
ing the Department of Real Estate's determina- 
tion of such amount, whichever occurs latest. In 
the event that a hotel owner or operator elects to 
provide one-for-one replacement pursuant to Sec- 
tion 41.13(a)(2) or (a)(5) herein and the Mayor's 
Office of Housing has not approved a proposal or 
organization thereunder prior to the effective 
date of this amended Chapter, the Department of 
Building Inspection shall not reject such appli- 
cation as incomplete for such lack of information. 
If a hotel owner or operator applies for a permit 
to convert using the one-for-one replacement 
option described in 41.13(a)(2) or (a)(5) and the 
Mayor's Office of Housing does not approve a 
housing development proposal or a nonprofit 
organization, or such project fails to progress 



through no fault of the owner or operator, such 
applicant shall be permitted to provide one-for- 
one replacement pursuant to Section 41.13 (a)(4) 
at 40 percent of the cost of construction of an 
equal number of comparable units plus site ac- 
quisition costs, provided that such applicant files 
the application under Section 41.13(a)(2) or (a)(5) 
no later than the effective date of this amended 
Chapter. The hotel owner or operator shall iden- 
tify such housing proposal or nonprofit organiza- 
tion within 180 days of the effective date of this 
amended Chapter. In the event that the Mayor's 
Office of Housing finds that the permit applicant 
has acted in good faith in seeking a project, the 
Mayor's Office of Housing may exercise its rea- 
sonable discretion to extend the provisions of 
this subsection for an additional 180 days. In the 
event that a project approved by the Mayor's 
Office of Housing fails to move forward through 
no fault of the permit applicant, the applicant 
may substitute another project within six months 
of being notified by the Mayor's Office of Housing 
of a failure of the prior project to move forward. 
The Mayor's Office of Housing may extend this 
period for an additional 180 days to identify such 
new proposal. The City shall issue a permit to 
convert under this subsection 41.13(d) only if the 
hotel owner or operator has either paid the 
40-percent in lieu fee to the City pursuant to 
Section 41.13(a)(4) herein or complied with the 
reciuirements of Sections 41.13(a)(2) or (a)(5) as 
applicable. In the event that a hotel owner or 
operator has not complied with any of these 
requirements and the City has not issued a 
permit to convert or if the Mayor's Office of 
Housing has not found the hotel owner or opera- 
tor has acted in good faith in seeking a project 
pursuant to subsections 41.13(a)(2) or (a)(5) or 
this subsection, no later than 180 days following 
the effective date of this amended Chapter, or 
such later date as herein provided, this Subsec- 
tion 41.13(d) shall no longer be applicable, City 
shall refund any amounts deposited as security 
pursuant to the terms herein, and such hotel 
owner or operator shall comply with all appli- 
cable terms of this Chapter. 

(e) When a residential unit is approved for 
conversion to another use pursuant to the provi- 
sions of Subsection 41.13(a)(2), (a)(4) or (a)(5) 



Sec. 41.13. 



San Francisco - Administrative Code 



3874 



above, such unit shall not be deemed to be 
reconverted into a residential unit regardless of 
any interim uses after payment as set forth in 
Subsections 41.13(a)(2), (a)(4) or (a)(5). 

(f) The funds deposited in the Residential 
Hotel Preservation Fund may be used to (i) 
create new affordable rental housing to replace 
the affordable housing lost as a result of the 
conversion or demolition of residential hotel units 
subject to this Ordinance and (ii) defend the 
Ordinance against legal challenge, including the 
legal costs and attorney's fees incurred in the 
defense. (Added by Ord. 121-90, App. 4/12/90; 
amended by Ord. 134-01, File No. 001926, App. 
7/6/2001; Ord. 46-05, File No. 050133, App. 3/23/ 
2005) 

SEC. 41.14. MANDATORY DENIAL OF 
PERMIT TO CONVERT. 

A permit to convert shall be denied by Direc- 
tor of the Department of Building Inspection if: 

(a) The requirements of Sections 41.12 or 
41.13, above, have not been fully complied with; 

(b) The application is incomplete or con- 
tains incorrect information; 

(c) An applicant has committed unlawful 
action as defined in this Chapter within 12 
months previous to the issuance for a permit to 
convert; 

(d) The proposed conversion or the use to 
which the unit would be converted is not permit- 
ted by the City Planning Code. (Added by Ord. 
121-90, App. 4/12/90; amended by Ord. 134-01, 
File No. 001926, App. 7/6/2001) 

SEC. 41.15. APPROVAL AND ISSUANCE 
OF PERMIT TO CONVERT. 

The Director of the Department of Building 
Inspection shall issue a permit to convert, pro- 
vided that: 

(a) The requirements of Section 41.12 have 
been met; 

(b) Evidence of compliance with the require- 
ments of Section 41.13 has been submitted. Sat- 
isfactory evidence of compliance may be: 

(1) A certification of final completion or per- 
mit of occupancy on the replacement housing; or 



(2) A receipt from the City Treasurer that 
the in-lieu pa3Tiient determined by the Depart- 
ment of Real Estate has been received; and 

(3) Evidence of compliance with the require- 
ments of Section 41.17 herein. 

(c) The proposed conversion or the use to 
which the unit would be converted is permitted 
by the City Planning Code. 

(d) Concurrent with the issuance of a per- 
mit to convert, the Director of the Department of 
Building Inspection shall issue a new certificate 
of use which shall state the newly certified 
number of residential units and tourist units. 
(Added by Ord. 121-90, App. 4/12/90; amended 
by Ord. 134-01, File No. 001926, App. 7/6/2001) 

SEC. 41.16. APPEAL OF DENIAL OR 
APPROVAL OF PERMIT TO CONVERT. 

(a) Denial or approval of a permit applica- 
tion may be appealed to the Board of Permit 
Appeals, pursuant to Sections 8 et seq. Part III of 
the San Francisco Municipal Code. 

(b) The owner or operator shall submit a 
statement under the penalty of perjury that he 
has notified all the affected permanent residents 
of his appeal and of the date, time and place of 
the hearing before the Board of Permit Appeals, 
seven calendar days prior to the scheduled hear- 
ing. 

(c) The appellant shall have the burden of 
proving that the determination of the Director of 
the Department of Building Inspection is in- 
vaHd. (Added by Ord. 121-90, App. 4/12/90; 
amended by Ord. 134-01, File No. 001926, App. 
7/6/2001) 

SEC. 41.17. RIGHTS OF PERMANENT 
RESIDENTS. 

(a) To apply for a permit to convert, an 
owner or operator of the hotel shall do the 
following: 

(1) Any interested community organization 
and all permanent residents residing in said 
building at the time of an application for a 
permit to convert and thereafter shall be timely 



3875 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.19. 



informed of all public hearings and administra- 
tive decisions concerning said conversion; said 
notice shall be posted by the owner or operator; 

(2) A permanent resident has the right to 
occupy his/lier residential unit for 60 calendar 
days from the issuance of the permit to convert; 

(3) Owner or operator shall offer a perma- 
nent resident available comparable units in the 
building, or to any replacement housing provided 
pursuant to Subsection 41.13(a)(1) or (2); 

(4) All displaced permanent residents are 
entitled to relocation assistance as provided for 
in subsection (b) below; 

(5) Seven calendar days prior to the filing of 
an application for a permit to convert, the owner 
or operator shall notify, in writing, by personal 
service, or registered or certified mail, every 
permanent resident affected by the proposed 
conversion of his/her intent to convert desig- 
nated units; 

(6) The notification required by Subsection 
(5) above shall also inform the permanent resi- 
dents of their rights under Subsections (1) through 
(4) above. 

(b) Relocation Assistance. 

(1) A permanent resident, who as a result of 
the conversion of his/her unit must relocate off 
site, shall be reimbursed the actual moving ex- 
penses not to exceed $300 or may consent to be 
moved by the owner or operator. 

(2) A displaced permanent resident shall 
have the right of first refusal for the rental or 
leasing of replacement units, if any, provided 
pursuant to the provisions of Sections 41.13(a)(1) 
or 41.13(a)(2). 

(3) A permanent resident displaced by par- 
tially completed conversion under the provisions 
of Section 41.7(c) shall be entitled to a displace- 
ment allowance of $1,000 per displaced person. 
(Added by Ord. 121-90, App. 4/12/90) 

SEC. 41.18. DEMOLITION. 

(a) This section shall apply only to demoli- 
tion of residential hotel buildings pursuant to an 
abatement order of the Director of Public Works 
or the Superior Court of the State of California, 
or demolition necessitated by major fires, natu- 



ral causes or accidents where the cost of repair 
exceeds 50 percent of the replacement value of 
the building. 

(b) Upon submission of an application for a 
demolition permit, the owner or operator shall 
post a copy of said application. 

(c) Upon notification by the Central Permit 
Bureau that a demolition permit has been is- 
sued, the owner or operator shadl post a notice 
explaining the procedure for challenging the 
issuance of the demolition permit to the Board of 
Permit Appeals. 

(d) When issued a demolition permit, the 
owner or operator shall provide a written notice 
of the demolition within 10 calendar days of 
issuance of the permit to each residential perma- 
nent resident. Each permanent resident shall be 
notified in writing of his/her rights to relocation 
assistance and to occupy the same unit for a 
period of up to 60 days after issuance of the 
demolition permit. 

(e) The subsequent issuance of a building 
permit for construction on the demolished site 
shall be conditioned on the owner or operator's 
agreement to replace, on a one-for-one basis, the 
demolished residential units as required by the 
provisions of Section 41.13. No building permit 
shall be issued until owner or operator complies 
with the provisions of Section 41.13. 

(f) The conditions for issuance of a demoli- 
tion permit set forth in subsection (e) above shall 
be recorded by the owner at the time of issuance 
of the demolition permit in order to provide 
notice of said conditions to all subsequent pur- 
chasers and interested parties. (Added by Ord. 
121-90, App. 4/12/90) 

SEC. 41.19. TEMPORARY CHANGE OF 
OCCUPANCY. 

(a) Temporary Change of Occupancy. 

(1) A tourist unit may be rented to a perma- 
nent resident, until voluntary vacation of that 
unit by the permanent resident or upon eviction 
for cause, without changing the legal status of 
that unit as a tourist unit. 



Sec. 41.19. 



San Francisco - Administrative Code 



3876 



(2) A permanent resident may be relocated 
for up to 21 days to another unit in the residen- 
tial hotel for purposes of complying with the 
Building Code requirements imposed by the UMB 
Seismic Retrofit Ordinance, Ordinance No. 219- 
92, without changing the designation of the unit. 

(3) A residential unit which is vacant at any 
time during the period commencing on May 1st 
and ending on September 30th annually may be 
rented as a tourist unit, provided that (i) the 
residential unit was vacant due to voluntary 
vacation of a permanent resident or was vacant 
due to lawful eviction for cause after the perma- 
nent resident was accorded all the rights guar- 
anteed by State and local laws during his/her 
tenancy, (ii) the daily log shows that the residen- 
tial unit was legally occupied for at least 50 
percent of the period commencing on October 1st 
and ending on April 30th of the previous year, 
unless owner or operator can produce evidence to 
the Department of Building Inspection explain- 
ing such vacancy to the satisfaction of the De- 
partment of Building Inspection, including but 
not limited to such factors as repair or rehabili- 
tation work performed in the unit or good-faith 
efforts to rent the unit at fair market value; and 
(iii) the residential unit shall immediately revert 
to residential use upon application of a prospec- 
tive permanent resident. 

25-percent Limit. 

However, at no time during the period com- 
mencing on May 1st and ending on September 
30th may an owner or operator rent for nonresi- 
dential use or tourist use more than 25 percent of 
the hotel's total residential units unless the 
owner or operator can demonstrate that (i) the 
requirements of 41.19(a)(3) above are met, (ii) 
good-faith efforts were made to rent such units to 
prospective permanent residents at fair market 
value for comparable units and that such efforts 
failed and (iii) the owner or operator has not 
committed unlawful action as defined in this 
Chapter within 12 months prior to this request. 
Owners or operators who seek to exceed this 
limit must request a hearing pursuant to Section 
41.11(b) above and the decision whether to per- 
mit owners or operators to exceed this limit is 
within the discretion of the hearing officer. 



(b) Special Requirements for Hearings 
on Tourist Season Rental of Residential 
Units. Where an owner or operator seeks a 
hearing in order to exceed the limit on tourist 
season rental of vacant residential units pursu- 
ant to Section 41.19(a)(3), the requirements of 
41.11(b)(1), (b)(2) and (b)(3) above shall be apph- 
cable except as specifically modified or enlarged 
herein: 

(1) Notice of Hearing. Notice of hearing 
as provided in Section 41.11(b)(1) above shall be 
given within 15 calendar days. The notice re- 
quirements for the owner or operator shall also 
be applicable to any interested party who has 
submitted a prior written request to the Director 
of the Department of Building Inspection to be 
notified of such hearings. 

(2) Time of Hearing. The hearing shall be 
held within 30 days of the submission of the 
owner or operator's written request for hearing. 

(3) Burden of Proof. Burden of proof is on 
the owner or operator. 

(4) Interested Party. Any interested party 
shall be deemed a "party to the hearing" for 
purposes of Section 41.11(b)(1). 

(5) Determination of the Hearing Of- 
ficer. Based upon the evidence presented at the 
hearing, conducted in accordance with Section 
41.11(b)(3) above, the hearing officer shall make 
findings as to (i) whether the residential unit 
was vacant due to voluntary vacation of a per- 
manent resident or was vacant due to lawful 
eviction, (ii) whether the residential unit was 
occupied for at least 50 percent of the period 
commencing on October 1st and ending on April 
30th of the previous year, (iii) whether the owner 
or operator has committed unlawful action un- 
der this Chapter within 12 months prior to this 
request, and (iv) whether the owner or operator 
made good-faith efforts to rent vacant residential 
units to prospective permanent residents at no 
more than fair market value for a comparable 
unit during the tourist season and yet was un- 
able to secure such rentals. Good-faith efforts 
shall include, but not be limited to, advertising 
the availability of the residential units to the 
public. In determining fair market value of the 



3877 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.20. 



residential units, the hearing officer shall con- 
sider any data on rental of comparable units, as 
defined in Section 41.4(b) herein. 

(6) Decision. The hearing officer shall ren- 
der a written decision and findings within 10 
working days of the hearing. 

(7) Effect of Decision. The hearing officer's 
decision shall remain in effect for the tourist 
season for which the owner or operator re- 
quested the hearing. If the owner or operator 
wishes to exceed the 25 percent limit during any 
subsequent tourist season, a new written re- 
quest for hearing must be submitted to the 
Director of the Department of Building Inspec- 
tion. 

(8) Construction. The purpose of this Sec- 
tion 41.19(b) is to supplement or modify provi- 
sions of Section 41.11(b) (1) through (b)(3). Un- 
less otherwise specifically modified, all provisions 
of Sections 41.11(b)(1) through (b)(3) are deemed 
applicable to hearings concerning the tourist 
season limitation on rental of vacant residential 
units. 

(c) Winter Rentals. A residential unit which 
is vacant at any time during the period commenc- 
ing on October 1st and ending on April 30th 
annually may be rented as a tourist unit, pro- 
vided that: 

( 1 ) Such owner or operator has been permit- 
ted to rent residential units as tourist units in 
excess of 25 percent of the residential units 
pursuant to Section 41.19(a)(3) above; 

(2) The owner or operator has not commit- 
ted unlawful action as defined in this Chapter 
within 12 months prior to the time of this re- 
quest; 

(3) A residential hotel may not rent in ex- 
cess of 33 percent of the total number of residen- 
tial units or 20 residential units, whichever is 
less, pursuant to this subsection; 

(4) Applicants to temporarily convert resi- 
dential units pursuant to this subsection shall 
submit applications to the Department of Public 
Works, in accordance with rules and regulations 
promulgated by the Department of Public Works; 



(5) A maximum of 60 residential units may 
be approved per year to be rented as tourist units 
or non-residential units pursuant to this Subsec- 
tion 41.19(c). In the event that the number of 
such applications exceeds 60 residential units, 
the Department of Public Works shall establish a 
lottery system based on priority ranking where 
preference shall be accorded to residential hotel 
owner who have been eligible more frequently 
than other hotel owners for temporary conver- 
sion pursuant to Subsection 41.19(a)(3) above; 

(6) Such nonresidential use is permitted by 
the zoning for such residential hotel; and 

(7) No application for such temporary con- 
version shall be appi'oved by the Department of 
Public Works to fill the unused portion of the 60 
residential unit limitation for the previous year. 
(Added by Ord. 121-90, App. 4/12/90; amended 
by Ord. 219-92, App. 7/14/92; Ord. 134-01, File 
No. 001926, App. 7/6/2001) 

SEC. 41.20. UNLAWFUL CONVERSION; 
REMEDIES; FINES. 

(a) Unlawful Actions. It shall be unlawful 
to: 

(1) Change the use of, or to eliminate a 
residential hotel unit or to demolish a residential 
hotel unit except pursuant to a lawful abatement 
order, without first obtaining a permit to convert 
in accordance with the provisions of this Chap- 
ter; 

(2) Rent any residential unit for a term of 
tenancy less than seven days except as permit- 
ted by Section 41.19 of this Chapter; 

(3) Offer for rent for nonresidential use or 
tourist use a residential unit except as permitted 
by this Chapter. 

(b) Hearing for Complaints of Unlawful 
Conversions. Upon the filing of a complaint by 
an interested party that an unlawful conversion 
has occurred and payment of the required fee, 
the Director of the Department of Building In- 
spection shall schedule a hearing pursuant to 
the provisions of Section 41.11(b). The complain- 
ant shall bear the burden of proving that a unit 
has been unlawfully converted. The hearing of- 



Sec. 41.20. 



San Francisco - Administrative Code 



3878 



ficer shall consider, among others, the following 
factors in determining whether a conversion has 
occurred: 

(1) Shortening of the term of an existing 
tenancy without the prior approval of the perma- 
nent resident; 

(2) Reduction of the basic services provided 
to a residential unit intended to lead to conver- 
sion. For the purpose of this section, basic ser- 
vices are defined as access to common areas and 
facilities, food service, housekeeping services and 
security; 

(3) Repeated failure to comply with order of 
the Department of Building Inspection or the 
Department of Public Health to correct code 
violations with intent to cause the permanent 
residents to voluntarily vacate the premises; 

(4) Repeated citations by the Director of the 
Department of Building Inspection or the Depart- 
ment of Public Health for Code violations; 

(5) Offer of the residential units for nonresi- 
dential use or tourist use except as permitted in 
this Chapter; 

(6) Eviction or attempts to evict a perma- 
nent resident from a residential hotel on grounds 
other than those specified in Sections 37.9(a)(1) 
through 37.9(a)(8) of the San Francisco Admin- 
istrative Code except where a permit to convert 
has been issued; 

(7) Repeated posting by the Director of the 
Department of Building Inspection of notices of 
apparent violations of this Chapter pursuant to 
Section 41.11(c) above. 

(c) Civil Penalties. Where the hearing of- 
ficer finds that an unlawful conversion has oc- 
curred, the Director of the Department of Build- 
ing Inspection shall impose a civil penalty of 
three times the daily rate per day for each 
unlawfully converted unit from the day the com- 
plaint is filed until such time as the unit reverts 
to its authorized use. The daily rate shall be the 
rate unlawfully charged by the hotel owner or 
operator to the occupants of the unlawfully con- 
verted unit. The Director may also impose pen- 
alties upon the owner or operator of the hotel to 
reimburse City or complainant for the costs of 
enforcement, including reasonable attorneys' fees. 



of this Chapter. The hearing officer's decision 
shall notify the parties of this penalty provision 
and shall state that the Director of the Depart- 
ment of Building Inspection is authorized to 
impose the appropriate penalty by written noti- 
fication to both the owner and operator, request- 
ing payment within 30 days. If the penalty 
imposed is not paid, a lien to secure the amount 
of the penalty will be recorded against the real 
property pursuant to the provisions of Section 
41.20(d) of this Chapter. 

(d) Lien Proceedings. If any penalty im- 
posed pursuant to Sections 41.10(d), 41.10(f), 
41.11(f) or 41, 20(c) is not received within the 
required time period, the Director of the Depart- 
ment of Building Inspection shall initiate pro- 
ceedings under Article XX of Chapter 10 of the 
San Francisco Administrative Code to make the 
penalty, plus accrued interest, a lien against the 
real property regulated under this Chapter. Ex- 
cept for the release of lien recording fee autho- 
rized by Administrative Code Section 10.237, all 
sums collected by the Tax Collector pursuant to 
this ordinance shall be held in trust by the 
Treasurer and distributed as provided in Section 
41.8(e) of this Chapter. 

(e) Civil Action. An interested party may 
institute a civil proceeding for injunctive relief 
and damages. The Director of the Department of 
Building Inspection may institute a civil proceed- 
ing for injunctive relief. Counsel for the inter- 
ested party shall notify the City Attorney's office 
of the City and County of San Francisco of any 
action filed pursuant to this Section. In deter- 
mining whether an unlawful conversion has oc- 
curred, the court may consider, among other 
factors, those enumerated in Section 41.20(b) of 
this Chapter. The interested party instituting a 
civil proceeding, or the City suing to enforce this 
Chapter, if prevailing parties, shall be entitled to 
the costs of enforcing this Chapter, including 
reasonable attorney's fees, pursuant to an order 
of the Court. (Added by Ord. 121-90, App. 4/12/ 
90; amended by Ord. 322-00, File No. 001917, 
App. 12/28/2000; Ord. 134-01, File No. 001926, 
App. 7/6/2001) 



3879 



Residential Hotel Unit Conversion and Demolition 



Sec. 41.22. 



SEC. 41.21. ANNUAL REVIEW OF 
RESIDENTIAL HOTEL STATUS. 

(a) The Department of Building Inspection 
shall prepare and submit to the Board of Super- 
visors an annual status report containing the 
following: 

(1) Current data on the number of residen- 
tial hotels and the number of residential units in 
each of the residential hotels in the City and 
County of San Francisco, including, to the extent 
feasible, information regarding rents, services 
provided, and violations of the City's Codes; 

(2) Current data on the number of residen- 
tial hotel units converted pursuant to a permit to 
convert; 

(3) Current data on the number of hotel 
units demolished or eliminated due to code abate- 
ment proceedings and fire; 

(4) Current data on the number of residen- 
tial hotel units illegally converted; 

(5) Current data on the number of replace- 
ment housing units rehabilitated or constructed; 

(6) A summary of the enforcement efforts by 
all City agencies responsible for the administra- 
tion of this Chapter; and 

(7) An evaluation of the workability and 
effectiveness of the permitted temporary change 
of occupancy procedures and winter rentals in 
Section 41.19 herein; and 

(8) A report on expenditures from the San 
Francisco Residential Hotel Preservation Fund 
Account. 

(b) The Economic and Social Policy Commit- 
tee of the Board of Supervisors shall conduct a 
hearing on the annual report submitted by the 
Department of Building Inspection and shall 
recommend appropriate actions to be taken by 
the Board of Supervisors. 

(c) The Department of Building Inspection 
should establish a San Francisco Residential 
Hotel Opersitors Advisory Committee composed 
of: 

— 3 members nominated by the San Francisco 
Hotel Association (for-profit operators); 

— 3 members nominated by the Golden Gate 
Hotel Association (for-profit operators); 



— 2 members nominated by the Council of 
Community Housing Organizations (non- 
profit hotel operators); 

— Deputy Mayor for Housing. 

The committee shall meet no less than once 
every three months to advise the Mayor's Office 
of Housing on matters including, but not limited 
to: 

(1) Proposed revisions to this ordinance; 

(2) Programs that various City agencies (i.e. 
Mayor's Office of Housing, Department of Social 
Services, etc.) should develop to assist the City's 
residential hotel operators; 

(3) Any state or federal laws the City should 
support, oppose or seek to revise that impact 
residential hotel operators; 

(4) Any new City, State or Federal pro- 
grams the City shall encourage that would pro- 
vide financial or technical support or assistance 
to San Francisco Residential Hotel Operators. 
(Added by Ord. 121-90, App. 4/12/90; amended 
by Ord. 134-01, File No. 001926, App. 7/6/2001) 

SEC. 41.22. CONSTRUCTION. 

(a) Nothing in this Chapter may be con- 
strued to supersede any other lawfully enacted 
ordinance of the City and County of San Fran- 
cisco, except that definitions provided in this 
Chapter shall govern the enforcement of this 
Chapter. 

(b) Clauses of this Chapter are declared to 
be severable and if any provision or clause of this 
Chapter or the application thereof is held to be 
unconstitutional or to be otherwise invalid by 
any court of competent jurisdiction, such inval- 
idity shall not affect other provisions of this 
Chapter. (Added by Ord. 121-90, App. 4/12/90) 



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CHAPTER 41A: APARTMENT UNIT CONVERSION AND DEMOLITION 



Sec. 41A.1. Title. 

Sec. 41A.2. Purpose. 

Sec. 41A.3. Findings. 

Sec. 41A.4. Definitions. 

Sec. 41A.5. Unlawful Conversion; Remedies. 

Sec. 41A.6. Report on Apartment 

Conversion. 
Sec. 41A.7. Construction. 
Sec. 41A.8. Procedures for Determining and 

Appealing Administrative 

Penalties. 

SEC. 41A.1. TITLE. 

This chapter shall be known as the Apart- 
ment Unit Conversion Ordinance. (Added by 
Ord. 331-81, App. 6/26/81) 

SEC. 41A.2. PURPOSE. 

It is the purpose of this ordinance to benefit 
the general public by minimizing adverse im- 
pacts on the housing supply and on persons and 
households of all income levels resulting from 
the loss of apartment units through their conver- 
sion to tourist and transient use. This is to be 
accomplished by regulating the conversion of 
apartment units to tourist and transient use, 
and through appropriate administrative and ju- 
dicial remedies. (Added by Ord. 331-81, App. 
6/26/81) 

SEC. 41A.3. FINDINGS. 

The Board of Supervisors finds that: 

(a) There is a severe shortage of decent, 
safe, sanitary and affordable rental housing in 
the City and County of San Francisco. 

(b) The people of the City and County of 
San Francisco, cognizant of the housing shortage 
in San Francisco, on November 4, 1980, adopted 
a declaration of policy to increase the City and 
County's housing supply by 20,000 units. 



(c) Many of the City and County's elderly, 
disabled and low-income persons and households 
reside in apartment units. 

(d) As a result of the removal of apartment 
units from the rental housing market, a housing 
emergency exists within the City and County of 
San Francisco for its elderly, disabled and low- 
income households. 

(e) The Board of Supervisors and the Mayor 
of the City and County of San Francisco recog- 
nized this housing emergency and enacted an 
ordinance which established a moratorium on 
the conversion of apartment units to tourist and 
transient use. 

(f) The conversion of apartment units to 
tourist and transient use impacts especially on 
persons seeking housing in the low to moderate 
price range. 

(g) It is in the public interest that conver- 
sion of apartment units be regulated and that 
remedies be provided when unlawful conversion 
has occurred, in order to protect the resident 
tenants and to conserve the limited housing 
resources. (Added by Ord. 331-81, App. 6/26/81) 

SEC. 41A.4. DEFINITIONS. 

(a) Apartment Unit. Room or rooms in 
any building, or portion thereof, which is de- 
signed, built, rented, leased, let or hired out to be 
occupied, or which is occupied as the home or 
residence of four or more households living inde- 
pendently of each other in dwelling units as 
defined in the San Francisco Housing Code, 
provided that the apartment unit was occupied 
by a permanent resident on or after February 8, 
1981. It is presumed that an apartment unit was 
occupied by a permanent resident on or after 
February 8, 1981, and the owner has the burden 
of proof to show that an apartment unit is not 
subject to this Chapter. 



3901 



Sec. 41A.4. 



San Francisco - Administrative Code 



3902 



(b) Residential Use. Any use for occu- 
pancy as a dwelling unit by a permanent resi- 
dent. 

(c) Tourist or Transient Use. Use of an 

apartment unit for occupancy on less than a 
30-day term of tenancy. 

(d) Permanent Resident. A person who 
occupies an apartment unit for at least 60 con- 
secutive days with intent to establish that unit 
as his or her principal place of residence. 

(e) Conversion or Convert. The change of 
the use or to rent an apartment unit from resi- 
dential use to tourist or transient use. 

(f) Owner. Owner includes any person who 
is the owner of record of the real property. Owner 
includes a lessee where an interested party al- 
leges that a lessee is offering an apartment unit 
for tourist or transient use. 

(g) Interested Party. A permanent resi- 
dent of the building in which the tourist or 
transient use is alleged to occur or the City and 
County of San Francisco. 

(h) Director. The Director of the Depart- 
ment of Building Inspection. (Added by Ord. 
331-81, App. 6/26/81; amended by Ord. 74-98, 
App. 3/16/98) 

SEC. 41A.5. UNLAWFUL CONVERSION; 
REMEDIES. 

(a) Unlawful Actions. It shall be unlawful 
for any owner to offer an apartment unit for rent 
for tourist or transient use. 

(b) Determination of Violation. Upon the 
filing of a complaint by a permanent resident 
that an unlawful conversion has occurred, the 
Director shall take reasonable steps necessary to 
determine the validity of the complaint. The 
Director may independently determine whether 
an owner may be renting an apartment unit for 
tourist or transient use as defined in this Chap- 
ter. To determine if there is a violation of this 
Chapter, the Director may initiate an investiga- 
tion of the subject property. This investigation 
may include, but is not limited to, an inspection 
of the subject property and a request for any 
pertinent information from the owner, such as 
leases or other documents. 



(c) Civil Action. Except as provided by 
Subsection (1) below, any interested party may 
institute proceedings for injunctive and mon- 
etary relief for violation of this Chapter. In 
addition, the owner may be liable for civil penal- 
ties of not more than $1,000 per day for the 
period of the unlawful rental. If the interested 
party is the prevailing party, such party shall be 
entitled to the costs of enforcing this Chapter, 
including reasonable attorneys' fees, pursuant to 
an order of the Court. If the interested party is a 
permanent resident, then the interested party 
shall retain the entire monetary award. Any 
monetary award obtained by the City and County 
of San Francisco in such a civil action shall be 
deposited in the Mayor's Office of Housing, Hous- 
ing Affordability Fund less the reasonable costs 
incurred by the City and County of San Fran- 
cisco in pursuing the civil action. 

(1) If the interested party is a permanent 
resident, such resident, as a condition to initiat- 
ing civil proceedings pursuant to Subsection (c), 
must satisfy the requirements set forth in Sec- 
tion 41A.8(b)(2). 

(d) Criminal Penalties. Any owner who 
rents an apartment unit for tourist or transient 
use as defined in this Chapter shall be guilty of a 
misdemeanor. Any person convicted of a misde- 
meanor hereunder shall be punishable by a fine 
of not more than $1,000 or by imprisonment in 
the County Jail for a period of not more than six 
months, or by both. Each apartment unit rented 
for tourist or transient use shall constitute a 
separate offense. 

(e) Method of Enforcement, Director. 

The Director shall have the authority to enforce 
this Chapter against violations thereof by any or 
all of the means provided for in this Section. 
(Added by Ord. 331-81, App. 6/26/81; amended 
by Ord. 74-98, App. 3/6/98) 

SEC. 41A.6. REPORT ON APARTMENT 
CONVERSION. 

(a) The Department of City Planning shall 
report to the Board of Supervisors on the conver- 
sion of apartment units to tourist and commer- 
cial uses and shall formulate comprehensive 



3903 



Apartment Unit Conversion and Demolition 



Sec. 41A.8. 



legislation for the Board of Supervisors to con- 
sider within one year of the passage of this 
ordinance. 

(b) The Department of City Planning shall 
specifically determine the following: 

(1) The social, economic and physical im- 
pact of such conversion upon low and moderate- 
income households, which comprise a significant 
portion of the residents of apartment units. These 
groups shall include, but not be limited to, the 
elderly, the disabled, minorities, single heads of 
households with minor children, and other per- 
sons with limited economic resources; 

(2) The impact that such conversions will 
have upon the total stock of low and moderate- 
income housing in the City and County of San 
Francisco as a whole, as well as the impact upon 
the areas in which the units in question are 
located; 

(3) The effect of prohibition of the conver- 
sion of said apartment units to tourist or com- 
mercial uses unless replacement housing units 
are provided on a one-to-one basis. (Added by 
Ord. 331-81, App. 6/26/81) 

SEC. 41A.7. CONSTRUCTION. 

(a) Nothing in this Chapter may be con- 
strued to supersede any other lawfully enacted 
ordinance of the City and County of San Fran- 
cisco. 

(b) Clauses of this Chapter are declared to 
be severable and if any provision or clause of this 
chapter or the application thereof is held to be 
unconstitutional or to be otherwise invalid by 
any court of competent jurisdiction, such inval- 
idity shall not affect other provisions of this 
Chapter. (Added by Ord. 331-81, App. 6/26/81) 

SEC. 41A.8. PROCEDURES FOR 
DETERMCvTING AND APPEALING 
ADMINISTRATIVE PENALTIES. 

(a) Notice of Complaint. Within 10 days 
of the filing of a complaint or upon the Director's 
independent finding that there may be a viola- 
tion of this Chapter, the Director shall notify the 



owner by certified mail that the owner's apart- 
ment unit is the subject of an investigation for an 
unlawful rental. 

(b) Director's Determination of a Viola- 
tion; Notice. Upon reviewing the information 
set forth in the complaint, if anj^, and any infor- 
mation obtained by the Director during his or 
her investigation, the Director shall determine 
whether an owner has violated this Chapter. The 
Director shall notify by certified mail the com- 
plainant and the owner of his or her determina- 
tion. 

(1) If the Director determines that a viola- 
tion has occurred, the Director's notice shall: 

(A) Specify a reasonable period of time dur- 
ing which the owner must correct or otherwise 
remedy the violation; and 

(B) State that if the violation is not cor- 
rected or otherwise remedied within this period, 
the owner may be required to pay the adminis- 
trative penalties set forth in Subsection (c). 

(2) If the Director determines that no viola- 
tion has occurred, for purposes of filing a civil 
action authorized by Section 41 A. 5(c)(1), the 
Director's determination is final. 

(c) Imposition of Administrative Penal- 
ties for Unabated Violations and Enforce- 
ment Costs. 

(1) Administrative Penalties. If the Di- 
rector, upon further investigation, finds that the 
violation has continued unabated beyond the 
time specified in the notice required by Subsec- 
tion (b)(1)(A), the Director may impose an admin- 
istrative penalty of not more than three times 
the rental rate charged for each unlawfully con- 
verted unit from the day the unlawful rental 
commenced until such time as the unlawful 
rental terminates. The rental rate charged shall 
be the rent charged, whether daily, weekly, or 
otherwise calculated, for the apartment unit 
during the period of the unlawful use. 

(2) Enforcement Costs. The Director also 
may require the owner to reimburse the City for 
the costs of enforcement of this Chapter, which 
shall include, but not be limited to, reasonable 
attorneys' fees. 



Sec. 41A.8. 



San Francisco - Administrative Code 



3904 



(d) Notice of Director's Determination 
of Continuing Violation and Imposition of 
Penalties. The Director shall notify the owner 
by certified mail that the violation has continued 
unabated and that administrative penalties shall 
be imposed pursuant to Subsection (c). The no- 
tice shall state the basis of the Director's deter- 
mination regarding the continued existence of 
the violation and the resulting imposition of 
penalties. The notice also shall inform the owner 
of the right to request a hearing within 10 days 
of the notice date to contest the Director's deter- 
mination on the continuation of the violation and 
the imposition of penalties. 

(e) Confirmation of Continuing Viola- 
tion and Imposition of Penalties. If no re- 
quest is timely filed for an administrative review 
hearing, the Director's determination regarding 
the continuation of the violation and the imposi- 
tion of penalties shall be deemed confirmed. The 
Director may then request payment of the ad- 
ministrative penalties and enforcement costs 
within 30 days of the certified mailed notice to 
the owner. If the administrative penalties and 
enforcement costs are not paid, the Director is 
authorized to initiate lien procedures to secure 
the amount of the penalties and costs against the 
real property that is subject to this Chapter, 
pursuant to the provisions of Section 41.20(d) of 
this Code; provided however, that the City Trea- 
surer shall distribute all sums collected pursu- 
ant to Subsection (1) herein. 

(f) Notice of Administrative Review 
Hearing. Whenever an administrative review 
hearing is requested pursuant to Subsection (d), 
the Director, within 45 calendar days of the 
request, shall notify the owner of the date, time, 
and place of the hearing by certified mail. Notice 
of the hearing shall be conspicuously posted on 
the building that is the subject of the hearing. 
The owner shall state under oath at the hearing 
that the notice remained posted for at least 10 
calendar days prior the hearing. The Director 
shall appoint a hearing officer to conduct the 
hearing. 

(g) Pre-hearing Submission. No less than 
three working days prior to the administrative 
review hearing, parties to the hearing shall 



submit written information to the Department of 
Building Inspection including, but not limited to, 
the following: the issues to be determined by the 
hearing officer and the evidence to be offered at 
the hearing. Such information shall be for- 
warded to the hearing officer prior to the hearing 
along with any information compiled by the 
Director. 

(h) Hearing Procedure. If more than one 
hearing is requested for apartment units located 
in the same building at or about the same time, 
the Director shall consolidate all of the hearings 
into one hearing. The hearing shall be tape 
recorded. Any party to the hearing may at his or 
her own expense, cause the hearing to be re- 
corded by a certified court reporter. Parties may 
be represented by counsel and have the right to 
cross-examine witnesses. All testimony shall be 
given under oath. Written decisions and findings 
shall be rendered by the hearing officer within 
20 working days of the hearing. Copies of the 
findings and decision shall be served upon the 
parties by certified mail. A notice that a copy of 
the findings and decision is available for inspec- 
tion between the hours of 9:00 a.m. and 5:00 p.m. 
Monday through Friday shall be posted by the 
owner in the building in the same location in 
which the notice of the administrative review 
hearing was posted. 

(i) Finality of the Hearing Officer's De- 
cision and Appeal. The decision of the hearing 
officer shall be final. Within 20 days after service 
of the hearing officer's decision, any party other 
than the City and County of San Francisco, may 
seek review of the hearing officer's decision by 
the municipal court, according to the procedures 
set forth in California Government Code Section 
53069.4. 

(j) Confirmation of Hearing Officer De- 
cision. If no notice of appeal of the hearing 
officer's decision is timely filed, the decision shall 
be deemed confirmed. If any imposed adminis- 
trative penalties and costs have not been depos- 
ited at this time, the Director may proceed to 
collect the penalties and costs pursuant to the 
lien procedures set forth in Subsection (e). 



3905 Apartment Unit Conversion and Demolition Sec. 41A.8. 



(k) Collection of Penalties after Munici- 
pal Court Decision. If the court finds in favor 
of the contestant, the amount of the municipal 
court filing fee shall be reimbursed to the con- 
testant by the City and County of San Francisco. 
If the administrative penalty has been deposited, 
the City and County of San Francisco shall 
distribute the administrative penalty in accor- 
dance with the judgment of the court. If the 
administrative penalties and enforcement costs 
have not been deposited and the decision of the 
municipal court is against the contestant, the 
Director may proceed to collect the penalties and 
costs. 

(1) Deposit of Penalties. Administrative 
penalties paid pursuant to this Chapter shall be 
deposited in the Mayor's Office of Housing, Hous- 
ing Affordability Fund less the reasonable costs 
incurred by the City and County of San Fran- 
cisco in pursuing the lien procedures set forth in 
Subsection (e), if such procedures were under- 
taken. If enforcement costs were imposed pursu- 
ant to Subsection (c), such funds shall be distrib- 
uted according to the purpose for which they 
were collected. (Added by Ord. 74-98, App. 3/6/ 
98) 



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CHAPTER 41B: [RESERVED] 



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San Francisco - Administrative Code 



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CHAPTER 41C: TIME-SHARE CONVERSION ORDINANCE 



Sec. 41C.1. 

Sec. 41C.2. 

Sec. 41C.3. 

Sec. 41C.4. 

Sec. 41C.5. 

Sec. 41C.6. 

Sec. 41C.7. 



Title. 

Findings. 

Definitions. 

Conversions Prohibited. 

Enforcement. 

Review of Ordinance. 

Severability. 



SEC. 41C.1. TITLE. 

This Chapter may be referred to as the Time- 
Share Conversion Ordinance. (Added by Ord. 
82-86, App. 3/21/86) 

SEC. 41C.2. FINDINGS. 

(a) There is a severe shortage of permanent 
housing in San Francisco. 

(b) A small supply of suitable vacant land, 
zoning constraints, construction costs and other 
factors limit the construction of additional hous- 
ing in San Francisco. 

(c) Population pressures and other demo- 
graphic trends cause great demand and are 
likely to accelerate the demand for San Fran- 
cisco housing, 

(d) In light of housing demand and limited 
new construction, conserving existing perma- 
nent housing is especially important. 

(e) Conversion of permanent housing to tour- 
ist or other temporary use removes housing 
units from the available stock and worsens the 
existing shortage. 

(f) The shortage of housing most acutely 
affects low- and moderate-income persons, the 
elderly and the disabled, both those already 
living in San Francisco and those wishing to 
move to the City. Conversion of permanent hous- 
ing to tourist or other temporary use most seri- 
ously affects low- and moderate-income persons, 
the elderly and the disabled, both those already 
living in San Francisco and those wishing to 
move to the City. 



(g) At this time, there appears to be no 
shortage of lodging facilities for visitors in San 
Francisco. 

(h) It is in the public interest to prohibit 
any additional conversions of permanent hous- 
ing, whether occupied or unoccupied, to time- 
share use, which is principally suitable for or 
used by visitors and other temporary users. 

(i) The purpose of this ordinance is to ben- 
efit the general public by presei-ving the supply 
of existing permanent housing and minimizing 
adverse effects on persons and households of all 
income levels, including but not limited to lower- 
and moderate-income, elderly and disabled per- 
sons, by prohibiting the conversion of dwelling 
units to time-share use and authorizing appro- 
priate remedies. (Added by Ord. 82-86, App. 
3/21/86) 

SEC. 41C.3. DEFINITIONS. 

When used in this ordinance, the following 
terms shall each have the meaning indicated. 

(a) "Residential unit" shall mean: (i) a dwell- 
ing unit as defined in Section 203.4 of the Hous- 
ing Code, or: (ii) any portion of a structure which 
portion is part of a hotel as defined in Section 
203.8 of the Housing Code; provided, however, 
that "residential unit" shall not include any unit 
classified as a tourist unit or a private club under 
Chapter 41 of the Administrative Code, or any 
unit covered by a preliminary public report is- 
sued by the California Department of Real Es- 
tate, pursuant to Sections 11010 et seq.. Busi- 
ness and Professions Code, prior to January 1, 
1986. 

(b) "Time-share use" shall mean a right, 
whatever its legal form, in perpetuity, for life, or 
for a term of years, to the recurrent, exclusive 
use or occupancy of any segment of real property, 
annually or on some other periodic basis, for a 
period of time that has been or will be allotted 
from among periods established by deed, condi- 



3927 



Sec. 41C.3. 



San Francisco - Administrative Code 



3928 



tion, agreement or other means, whether or not 
coupled with an estate in real property. (Added 
by Ord. 82-86, App. 3/21/86) 

SEC. 41C.4. CONVERSIONS 
PROHIBITED. 

It shall be unlawful for any person to convert 
to time-share use, offer to another for time-share 
use or occupy as a time-share use any portion of 
any structure which portion was a residential 
unit not in time-share use on the initial effective 
date of this Section. This prohibition shall not be 
affected by any intervening change in use of the 
unit. (Added by Ord. 82-86, App. 3/21/86) 



SEC. 41C.7. SEVERABILITY. 

If any part or parts of this ordinance should 
be held unconstitutional or otherwise invalid, 
that shall not affect the validity of any remain- 
ing part or parts of this ordinance. The Board of 
Supervisors hereby declares that it would have 
passed each part of this ordinance irrespective of 
the unconstitutionality or invalidity of any other 
part or parts. (Added by Ord. 82-86, App. 3/21/ 
86) 



SEC. 41C.5. ENFORCEMENT. 

Violation of this ordinance shall be a misde- 
meanor. The Bureau of Building Inspection shall 
be responsible for enforcement of this ordinance, 
and may recommend to the City Attorney or 
District Attorney initiation of an action hereun- 
der. The City Attorney shall have the power to 
bring an action for injunctive or other judicial 
relief hereunder. (Added by Ord. 82-86, App. 
3/21/86) 



SEC. 41C.6. REVIEW OF ORDINANCE. 

Not later than four years and six months 
after the initial effective date of this Section, the 
Department of City Planning shall report to the 
Board of Supervisors with respect to the subject 
matter of this ordinance and the stock of perma- 
nent housing in the City and County of San 
Francisco, and may recommend, if appropriate, 
the modification or repeal of this ordinance. Not 
later than six months after receipt of said report, 
the Board of Supervisors shall hold a hearing to 
consider the contents of the report, and to con- 
sider extension or repeal of this ordinance. Not 
later than six months after receipt of said report, 
the Board of Supervisors shall hold a hearing to 
consider the contents of the report, and to con- 
sider extension or repeal of this ordinance. This 
ordinance shall be repealed five years after its 
initial effective date unless the Board of Super- 
visors shall on or before that date extend or 
re-enact it. (Added by Ord. 82-86, App. 3/21/86) 



[The next page is 3935] 



CHAPTER 41D: RESIDENTIAL HOTEL VISITOR POLICIES 



Sec. 41D.1. Title. 

Sec. 41D.2. Purpose. 

Sec. 41D.3. Authority of the Single Room 
Occupancy Hotel Safety and 
Stabilization Task Force, 
Approval of the Initial Uniform 
Visitor Policy for Residential 
Hotels, and Subsequent 
Authority of the Residential 
Rent Arbitration and 
Stabilization Board. 

Sec. 41D.4. Required Goals for the Uniform 
Visitor Policy and Any 
Supplemental Visitor Policies. 

Sec. 4 ID. 5. Hotel Operator Petitions for 
Supplemental Visitor Policies. 

Sec. 41D.6. Review and Amendment of the 
Uniform Visitor Policy, and 
Amendment of Criteria and 
Procedures for Approving 
Supplemental Visitor Policies. 

Sec. 41D.7. Hotel Occupant Petitions for 
Violation of this Chapter. 

Sec. 41D.8. Limitation of Liability. 

Sec. 41D.9. Severability 

SEC. 41D.1. TITLE. 

This Chapter shall be known as the Residen- 
tial Hotel Visitor Policy Ordinance. For purposes 
of this Chapter, "Residential Hotel" shall have 
the same meaning as that set forth in Adminis- 
trative Code Section 41.4(p), except that housing 
sites operated by non-profit organizations for the 
purpose of providing housing and supportive 
services to victims and survivors of domestic 
violence, as confirmed by the Department on the 
Status of Women or its successor(s), shall be 
exempt from the requirements of this Chapter. 
(Added by Ord. 135-01, File No. 010526, App. 
7/6/2001; amended by Ord. 62-02, File No. 020343, 
App. 5/3/2002; Ord. 7-07, File No. 061538, App. 
1/18/2007) 



SEC. 41D.2. PURPOSE. 

The purpose of this ordinance is to establish 
a mechanism for the review and approval of 
Visitor Policies for the City's Residential Hotels. 
Such policies shall be designed to protect the 
safety, welfare and dignity of guests and occu- 
pants of Residential Hotels in the City. Pursuant 
to Police Code Section 919.1, operators, employ- 
ees or agents of Residential Hotels may not 
impose or collect a fee for any person to visit a 
guest or occupant of the hotel, nor restrict visi- 
tors to guests or occupants of these hotels except 
in accordance with an approved Visitor Policy, as 
set forth in this Chapter. (Added by Ord. 135-01, 
File No. 010526, App. 7/6/2001) 

SEC. 41D.3. AUTHORITY OF THE 
SINGLE ROOM OCCUPANCY HOTEL 
SAFETY AND STABILIZATION TASK 
FORCE, APPROVAL OF THE INITIAL 
UNIFORM VISITOR POLICY FOR 
RESIDENTIAL HOTELS, AND 
SUBSEQUENT AUTHORITY OF THE 
RESIDENTIAL RENT ARBITRATION AND 
STABILIZATION BOARD. 

(a) The Single Room Occupancy Hotel Safety 
and StabiHzation Task Force ("SRO Task Force") 
was created by Board of Supervisors Resolution 
No. 868-99. In addition to the duties and obliga- 
tions imposed by that resolution, the Task Force 
was authorized by Ordinance No. 135-01 to carry 
out the requirements of this Chapter for initial 
api)roval of a Uniform Visitor Policy for Residen- 
tial Hotels (Uniform Visitor Policy). The Task 
Force fulfilled this responsibility on December 5, 
2001, by adopting the initial "Uniform Visitor 
Policy in SRO Hotels." 

(b) Following SRO Task Force approval of 
the initial Uniform Visitor Policy, the Residential 
Rent Stabilization and Arbitration Board is au- 
thorized to review and amend the Uniform Visi- 
tor Policy from time to time, to establish criteria 
and procedures for approval of Supplemental 



3935 



Supp. No. 11, September/October 2007 



Sec. 41D.3. 



San Francisco - Administrative Code 



3936 



Visitor Policies, and to hear and determine com- 
plaints of non-compliance with the provisions of 
this Chapter. No Visitor Policy may be imple- 
mented or enforced prior to its approval in accor- 
dance with this Chapter. (Added by Ord. 135-01, 
File No. 010526, App. 7/6/2001; amended by Ord. 
62-02, File No. 020343, App. 5/3/2002) 

SEC. 41D.4. REQUIRED GOALS FOR 
THE UNIFORM VISITOR POLICY AND 
ANY SUPPLEMENTAL VISITOR 
POLICIES. 

(a) The Uniform Visitor Policy and any 
Supplemental Visitor Policies shall meet the 
following goals: 

(1) To enhance the safety and welfare of 
guests and occupants of Residential Hotels; 

(2) To ensure the dignity and personal free- 
dom of guests and occupants of residential hotels 
and their visitors by eliminating unnecessary 
restrictions on the ability of guests and occu- 
pants of residential hotels to conduct their per- 
sonal and social lives in the manner that they 
choose. 

(3) To prevent harassment or other inappro- 
priate interference by residential hotel opera- 
tors, employees or agents with the personal and 
social lives of residential hotel guests and occu- 
pants and their visitors. 

(4) To respect the privacy rights and right 
to quiet enjojnnent of other residential hotel 
guests and occupants. 

(5) To recognize the obligation of SRO op- 
erators to maintain the safety of the premises. 

(6) To incorporate and to be consistent with 
the provisions of Police Code Section 919(a). 

(7) To ensure that a SRO guest or occupant 
may bring on the premises visitors to assist the 
SRO guest or occupant with "get out the vote 
activities" on the same basis as any other visitor 
under the uniform visitor policy. For the pur- 
poses of this subsection, the term "get out the 
vote activities" means any activity that has as its 
primary purpose encouraging SRO guests and 
occupants to exercise their right to vote, includ- 



ing but not limited to distributing handbills, 
door hangers and flyers, as well as providing 
assistance with transportation to the polls. 

(b) However, nothing in the uniform visitor 
policy or any supplemental visitor policy shall 
encourage or allow any hotel to exceed its ap- 
proved max;imum occupancy under state or local 
fire safety laws. (Added by Ord. 135-01, File No. 
010526, App. 7/6/2001; amended by Ord. 62-02, 
File No. 020343, App. 5/3/2002; Ord. 213-07, File 
No. 070590, App. 9/21/2007) 

SEC. 41D.5. HOTEL OPERATOR 
PETITIONS FOR SUPPLEMENTAL 
VISITOR POLICIES. 

(a) The operator of a Residential Hotel wish- 
ing to add a Supplemental Visitor Policy to the 
Uniform Visitor Policy may petition the San 
Francisco Residential Rent Stabilization and Ar- 
bitration Board for approval of a proposed Supple- 
mental Policy. A Supplemental Visitor Policy 
must be consistent with the Uniform Visitor 
Policy, the goals required by Section 41D.4, and 
other requirements of this Chapter. 

(b) The Rent Board shall conduct a public 
hearing on the proposed Supplemental Visitor 
Policy, and either approve the proposed policy 
and notify the operator in writing, or disapprove 
and return the proposed policy to the operator 
with a written explanation of the reasons why 
the proposed policy does not meet the require- 
ments for approval. 

(c) Once approved, a Supplemental Visitor 
Policy may be subject to periodic review by the 
Rent Board. The Rent Board may require revi- 
sions to an approved Supplemental Visitor Policy 
where necessary in order to bring the policy into 
conformity with Uniform Visitor Policy amend- 
ments or other applicable law or regulations, or 
to insure ongoing compliance with the goals 
required by Section 41D.4. The Rent Board may 
also withdraw approval of an approved Supple- 
ment Visitor Policy upon finding that the policy 
no longer meets the requirements for approval. 

(d) A public hearing or meeting noticed un- 
der this Section 41D.5, shall be noticed for a 
minimum of ten (10) days. Notice shall be pro- 



Supp. No. 11, September/October 2007 



3937 



Residential Hotel Visitor Policies 



Sec. 41D.8. 



vided to operators, occupants, law enforcement, 
health and human service agencies, and inter- 
ested organizations, according to Rent Board 
rules and regulations promulgated for this pur- 
pose. 

(e) The Uniform Visitor Policy and Supple- 
mental Visitor Policy shall be posted on a mini- 
mum 8V2 inch by 11-inch sign in the lobby of each 
Residential Hotel in an area accessible to guests 
and occupants. (Added by Ord. 135-01, File No. 
010526, App. 7/6/2001; amended by Ord. 62-02, 
File No. 020343, App. 5/3/2002) 

SEC. 41D.6. REVIEW AND AMENDMENT 
OF THE UNIFORM VISITOR POLICY, 
AND AMENDMENT OF CRITERIA AND 
PROCEDURES FOR APPROVING 
SUPPLEMENTAL VISITOR POLICIES. 

(a) The Rent Board shall conduct an annual 
public hearing to review the Uniform Visitor 
Policy and adopt amendments as determined to 
be appropriate under the goals and require- 
ments of this Chapter. The Rent Board may also 
consider and adopt amendments to the Uniform 
Visitor Policy at other publicly noticed meetings, 
as needed to effectuate the goals and require- 
ments of this Chapter. Amendments may be 
proposed by the Rent Board and its Executive 
Director, and as permitted under Section 41D.6(c). 

(b) The Rent Board may conduct a public 
hearing to review the criteria and procedures for 
approving Supplemental Visitor Policies and adopt 
amendments, as determined to be appropriate 
under the goals and requirements of this Chap- 
ter. Amendments may be proposed by the Rent 
Board and its staff, and as permitted under 
Section 41D,6(c). 

(c) Interested parties, including, but not 
limited to, operators, guests and occupants, visi- 
tors, law enforcement, health and human service 
agencies and interested organizations may re- 
quest that the Rent Board amend the Uniform 
Visitor Policy or amend the criteria and proce- 
dures for approval of Supplemental Visitor Poli- 
cies. Placement of such requests on a Rent Board 



agenda or notice of hearing shall be at the 
discretion of the Rent Board and its Executive 
Director. 

(d) A public hearing or meeting noticed un- 
der this Section 411). 6 shall be noticed for a 
minimum of ten (10) days. Notice shall be pro- 
vided to operators, occupants, law enforcement, 
health and human service agencies, and inter- 
ested organizations, according to Rent Board 
rules and regulations promulgated for this pur- 
pose. (Added by Ord. 135-01, File No. 010526, 
App. 7/6/2001; amended by Ord. 62-02, File No. 
020343, App. 5/3/2002) 

SEC. 41D.7. HOTEL OCCUPANT 
PETITIONS FOR VIOLATION OF THIS 
CHAPTER. 

(a) A current or former residential hotel 
occupant who believes that the hotel has not 
acted in compliance with the Uniform Visitor 
Policy or any approved Supplemental Policy, or 
who believes that the hotel has not otherwise 
acted in compliance with the provisions of this 
Chapter 4 ID, may petition the Rent Board for a 
reduction in rent. 

(b) Upon a finding of violation following a 
hearing, the Rent BoEird may order a reduction of 
rent for the aggrieved occupant. 

(c) The Rent Board may promulgate Rules 
and Regulations for the mediation and arbitra- 
tion of such occupant petitions, including provi- 
sion for mediation and/or hearing and decision 
by Administrative Law Judge, with a right of 
appeal to the Rent Board. (Added by Ord. 135-01, 
File No. 010526, App. 7/6/2001; amended by Ord. 
62-02, File No. 020343, App. 5/3/2002) 

SEC. 41D.8. LIMITATION OF LIABILITY. 

By adopting this Residential Hotel Visitor 
Policy Ordinance, the City and County of San 
Frtmcisco is assuming an undertaking only to 
promote the general welfare. It is not assuming, 
nor is it imposing on its officers and employees, 
an obligation for breach of which it is liable in 
money damages to any person v^ho claims that 
such breach proximately caused injury. (Added 
by Ord. 135-01, File No. 010526, App. 7/6/2001) 



Supp. No. 11, September/October 2007 



Sec. 41D.9. San Francisco - Administrative Code 3938 

SEC. 41D.9. SEVERABILITY. 

If any provision, subdivision, section, para- 
graph, phrase or clause of this Chapter or the 
apphcation thereof is for any reason held to be 
invalid or unconstitutional by a court of compe- 
tent jurisdiction, such decision shall not affect 
the validity of the remainder of this Chapter. The 
remainder of this Chapter shall remain effective 
and enforceable to the fullest extent allowed by 
law. All clauses and provisions of this Chapter 
are hereby declared to be severable. (Added by 
Ord. 135-01, File No. 010526, App. 7/6/2001) 



[The next page is 3949] Supp. No. 11, September/October 2007 



CHAPTER 41E. RESIDENTIAL HOTEL MAIL RECEPTACLE ORDINANCE 



Sec. 41E.1. Title. 

Sec. 41E.2. Findings. 

Sec. 41E.3. Mailboxes for Permanent 

Residents of Residential Hotels. 

Sec. 41E.4. Petitions by Permanent 

Residents for Violation of this 
Chapter. 

Sec. 4 IE. 5. Limitation of Liability. 

SEC. 41E.1. TITLE. 

This Chapter shall be known as the Residen- 
tial Hotel Mail Receptacle Ordinance. For pur- 
poses of this Chapter, the terms "owner," "per- 
manent resident," "residential hotel," and 
"residential unit" shall have the same meaning 
as those set forth in Administrative Code Sec- 
tions 41.4(m), (n), (p), and (q), respectively. (Added 
by Ord. 73-06, File No. 060188, App. 4/20/2006) 

SEC. 41E.2. FINDINGS. 

The Board of Supervisors finds that: 

(a) The high cost of housing in San Fran- 
cisco makes residential hotels the only perma- 
nently affordable housing option for many se- 
niors, immigrants, families, and individuals on 
low or fixed incomes. 

(b) The City and County of San Francisco 
has recognized the essential role of residential 
hotels and has utilized them as a valuable re- 
source to permanently house more than 1,300 
formerly homeless people in the City's Master 
Lease Program, which has become a national 
model for permanent supportive housing and an 
important part of finding a solution to the prob- 
lem of homelessness. 

(c) If there are no individual mail recep- 
tacles at a residential hotel, the United States 
Postal Service makes a "central delivery," where 
all mail is dropped in a bag at the front desk and 
distributed by desk clerks. 



(d) Desk clerks are low-paid, under- trained, 
and overburdened with the extra responsibility 
of handling mail that adds time and difficulty to 
their jobs, resulting in mail frequently being lost, 
misplaced, or accidentally given to the wrong 
person. In addition, mail is not forwarded to a 
tenant at their new address when they move out 
of a residential hotel, 

(e) This lack of services creates an undue 
burden for the tenants of residential hotels. Lost 
or delayed mail has resulted in residential hotel 
tenants having been bumped to the back of the 
Section 8 list after years of waiting, or losing out 
on other essential services because of missed 
appointments. Many tenants must receive SSI, 
Veterans Disability, or paychecks on time in 
order to pay their rent for the month. Tenants 
who move must return to their old address 
regularly and attempt to collect mail rather than 
have it forwarded to their new address as the 
Postal Service does for apartment houses. 

(f) Mail security and privacy are high pri- 
orities for the tenants of residential hotels. At 
the Central City SRO Collaborative tenant con- 
vention, attended by 300 tenants from more than 
100 San Francisco residential hotels, problems 
with mail distribution in the hotels ranked as 
one of the most pressing issues for the tenants 
surveyed. 

(g) Many tenants of residential hotels have 
been homeless before and are understandably 
afraid that lost or misplaced mail could result in 
homelessness again. 

(h) While a number of non-profit owned or 
managed residential hotels have installed in 
their lobbies mail receptacles for permanent resi- 
dents that meet United States Postal Service 
specifications, other residential hotels have not. 
(Added by Ord. 73-06, File No. 060188, App. 
4/20/2006) 



3949 



Supp. No. 1, September 2006 



Sec. 41E.3. 



San Francisco - Administrative Code 



3950 



SEC. 41E.3. MAILBOXES FOR 
PERMANENT RESIDENTS OF 
RESIDENTIAL HOTELS. 

(a) Within one year of the effective date of 
this Chapter, the owner of a residential hotel 
shall install an individual mail receptacle for 
each residential unit. The mail receptacle shall 
be for receipt of mail delivered by the United 
States Postal Service to a permanent resident of 
the hotel. The hotel owner is responsible for 
making arrangements with the United States 
Postal Service for the installation of these recep- 
tacles and delivery of mail thereto. Installation 
and maintenance of the mail receptacles shall 
meet all of the specifications and requirements of 
the United States Postal Service. (Added by Ord. 
73-06, File No. 060188, App. 4/20/2006) 

SEC. 41E.4. PETITIONS BY 
PERMANENT RESIDENTS FOR 
VIOLATION OF THIS CHAPTER. 

(a) A current or former permanent resident 
of a residential hotel who believes that the hotel 
has not acted in compliance with the provisions 
of this Chapter 4 IE may petition the Rent Board 
for a reduction in rent. 

(b) Upon a finding of violation following a 
hearing, the Rent Board may order a reduction of 
rent for the aggrieved current or former resident. 

(c) The Rent Board may promulgate Rules 
and Regulations for the mediation and arbitra- 
tion of such resident petitions, including provi- 
sion for mediation and/or hearing and decision 
by an Administrative Law Judge, with a right of 
appeal to the Rent Board. (Added by Ord. 73-06, 
File No. 060188, App. 4/20/2006) 



person who claims that such breach proximately 
caused injury. (Added by Ord. 73-06, File No. 
060188, App. 4/20/2006) 



SEC. 41E.5. LIMITATION OF LIABILITY. 

By adopting this Residential Hotel Perma- 
nent Resident Mail Receptacle Ordinance, the 
City and County of San Francisco is assuming an 
undertaking only to promote the general wel- 
fare. It is not assuming, nor is it imposing on its 
officers and employees, an obligation for breach 
of which it is liable in money damages to any 



[The next page is 3959] 



Supp. No. 1, September 2006 



CHAPTER 41F: TOURIST HOTEL CONVERSION* 



Sec. 41F.1. 
Sec. 41F.2. 
Sec. 41F.3. 
Sec. 41F.4. 
Sec. 41F5. 
Sec. 41F6. 



Title. 

Definitions. 

Conversions Restricted. 

Enforcement. 

Sunset Provision. 

Severability. 



SEC. 41F.1. TITLE. 

This Chapter may be referred to as the Tour- 
ist Hotel Conversion Ordinance. (Added by Ord. 
41-08, File No. 071528, App. 3/24/2008) 

SEC. 41F.2. DEFINITIONS. 

(a) "Baseline Inventory" shall mean an in- 
ventory of the number of Large Tourist Hotel 
Rooms commercially available for rent as of 
March 1, 2009. The Planning Commission shall 
adopt a Baseline Inventory reflecting the num- 
ber of Large Tourist Hotel Rooms in the City as 
of March 1, 2009, and shall update the Baseline 
Inventory annually thereafter and no later than 
March 15 of each year. The Planning Depart- 
ment shall provide the public with an opportu- 
nity for meaningful review and comment on the 
Baseline Inventory and annual updates, includ- 
ing a public hearing. Rooms created by new 
Large Tourist Hotel Construction and/or expan- 
sion shall qualify as additional Large Tourist 
Hotel Rooms in the year they obtain final certifi- 
cates of occupancy from the City, and shall be 
added to the Baseline Inventory. Losses to the 
City's Large Tourist Hotel inventory, including, 
but not limited to, Conversions, shall be sub- 
tracted from the Baseline Inventory. 

(b) "Condominium Project" shall mean (i) a 
Community Apartment as defined in Section 
1308(b) of the Subdivision Code; (ii) a Condo- 



minium as defined in Section 1308(c) of the 
Subdivision Code; (iii) a Stock Cooperative as 
defined in Section 1308(f) of the Subdivision 
Code; or (iv) any other subdivided interest in 
land. 

(c) "Convert" shall mean: (i) to change the 
t3rpie of ownership of any real property to that 
defined as a Condominium Project and in which 
two or more units are newly created wholly or in 
substantial part within the existing structure of 
a Large Tourist Hotel, regardless of whether 
substantial improvements have been made to 
such structures; or (ii) to change one or more 
guest rooms, one or more suites of rooms, or any 
portion thereof within an existing Large Tourist 
Hotel. 

(d) "Dwelling Unit" shall mean any build- 
ing or portion thereof that contains living facili- 
ties, including provisions for sleeping, eating, 
cooking, and sanitation as required by the Hous- 
ing Code, for not more than one Family. 

(e) "Family" shgdl mean one or more per- 
sons, related or unrelated, living together as a 
single integrated household in a dwelling unit. 

(f) "Large Tourist Hotel" shall mean any 
building in the City containing 100 or more guest 
rooms or suites of rooms intended or designated 
to be used for commercial tourist use by provid- 
ing accommodation to transient guests on a 
nightly basis or longer, as contemplated by Sec- 
tion 216(b) of the Planning Code. The definition 
of Large Tourist Hotel shall include, for purposes 
of this Chapter, a building (or set of buildings, 
which shall mean buildings on the same lot, 
adjacent lots, or within the same block and 
owned by the same entity) which would have 
qualified as a Large Tourist Hotel in any of the 



^Editor's Note: 

Ord. 41-08, File No. 071528, Approved March 24, 2008, repealed former Ch. 41F, in its entirety, and enacted 
provisions designated as a new Ch. 41 F to read as herein set out. Prior to inclusion of said ordinance, Ch. 41 F 
pertained to similar subject matter and derived from Ord. 214-05, File No. 051333, App. 8/18/2005 and Ord. 21-07, 
File No. 061536, App. 2/9/2007. 



3959 



Supp. No. 15, March 2008 



Sec. 41F.2. 



San Francisco - Administrative Code 



3960 



five years preceding the application for Conver- 
sion, A building (or set of buildings) shall not be 
considered a Large Tourist Hotel if the total 
number of rooms intended to be operated sepa- 
rately for transient use is less than 100 rooms. 

(g) "Large Tourist Hotel Room" shall mean 
any guest room, suite of rooms, or any portion 
thereof in a Large Tourist Hotel intended or 
designated to be used for commercial tourist use 
by providing accommodation to transient guests 
on a nightly basis or longer, as contemplated by 
Section 216(b) of the Planning Code. 

(h) "Ancillary Hotel Area" shall mean any 
area within a Large Tourist Hotel not defined as 
a Large Tourist Hotel Room, including, but not 
limited to, restaurant, retail, and parking areas. 
(Added by Ord. 41-08, File No. 071528, App. 
3/24/2008) 

SEC. 41F.3. CONVERSIONS 
RESTRICTED. 

(a) General Prohibition. It shall be un- 
lawful for any person to Convert any portion of a 
Large Tourist Hotel except as provided in this 
Chapter. 

(b) Conversion prior to March 1, 2010. 

Notwithstanding the foregoing restriction, the 
Planning Commission may approve a total of up 
to 550 Large Tourist Hotel Rooms to be Con- 
verted prior to March 1, 2010. The Planning 
Commission shall approve applications for Con- 
versions under this section on a first-come first- 
served basis. Applicants' place in the Conversion 
queue shall be based upon the date the Planning 
Department receives a complete application, as 
detennined by the Zoning Administrator. 

(c) Ancillary Hotel Areas. A person may 
Convert all or any portion of an Ancillary Hotel 
Area upon a showing that the Conversion shall 
not result in a reduction in Large Tourist Hotel 
Rooms in the subject hotel. Notwithstanding 
Conversion approval under the Chapter, a Con- 
version project must in addition obtain all appli- 
cable City permits and approvals, including any 
applicable conditional use authorization require- 



ments. This Chapter shall not limit City discre- 
tion to deny or approve with conditions a pro- 
posed Conversion project. 

(d) Conversion Lottery. Beginning in 20 10, 
the Planning Department shall hold an annual 
lottery for Conversion credits for Large Tourist 
Hotel Rooms in accordance with the following: 

( 1 ) The Planning Department shall hold the 
lottery only if: 

(i) The update to the Baseline Inventory 
shows a net increase of at least 100 Large Tourist 
Hotel Rooms during the previous Baseline Inven- 
tory year. Large Tourist Hotel Rooms lost through 
authorized conversions shall not be considered 
for purposes of calculating the net increase in 
Large Tourist Hotel Rooms under this section; 
and 

(ii) The number of existing Large Tourist 
Hotel Rooms exceeds the March 2010 Baseline 
Inventory by at least the number of Conversion 
credits available in the proposed lottery pursu- 
ant to subsection (d)(2), below. 

(2) The number of Conversion credits avail- 
able in each lottery shall equal the net increase 
in Large Tourist Hotel Rooms during the previ- 
ous Baseline Inventory year, not including Con- 
versions authorized by lottery credits. Large 
Tourist Hotel Rooms lost through authorized 
Conversions shall not be considered for purposes 
of calculating the net increase in Large Tourist 
Hotel Rooms under this section. 

(3) In order to participate in the conversion 
credit lottery, applicants must submit a Section 
41F.3(f)(2) application within 15 business days of 
the formal adoption of the Baseline Inventory 
update. The Planning Department shall issue 
one lottery ticket per Large Tourist Hotel appli- 
cant. Only one application may be submitted per 
Large Tourist Hotel. 

(4) The Planning Department shall hold the 
lottery at a public hearing within 6 weeks of the 
formal adoption of the Baseline Inventory up- 
date. Winning lottery tickets shall be chosen 
randomly, one at a time. If not enough credits 
remain in the pool to satisfy a winning ticket, 
then the applicant shall receive the number of 
credits remaining in the pool and receive the 



Supp. No. 15, March 2008 



3961 



Tourist Hotel Conversion 



Sec. 41F.3. 



remainder as the first applicant on the standby 
list. If a lottery would otherwise be required by 
the Chapter and the number of available credits 
exceeds the total number of applicants' requests 
for Conversion credits in a particular year, then 
the credits shall be granted and no lottery shall 
take place. 

(5) If applicants collectively seek more Con- 
version credits than are available in the lottery 
pool, then, after the last winning ticket is drawn, 
the Planning Department shall draw a reason- 
able number of alternate tickets for inclusion in 
a standby list. If, nine months after the lottery, 
the Planning Department revokes winning cred- 
its according to subsection (e)(2), below, the cred- 
its shall be reallocated to the standby list, in the 
order drawn. 

(e) Conversion Credits. 

(1) Except as provided in Sections 41F.3(b) 
or (c). Conversion is prohibited unless the appli- 
cant uses Conversion credits to offset the loss of 
Large Tourist Hotel Rooms. A lottery award of 
Large Tourist Hotel Conversion credits does not 
grant the credit-holder a right to development or 
otherwise limit City discretion to deny or ap- 
prove with conditions a proposed Conversion 
project. A credit holder must still obtain all 
otherwise applicable City permits and approv- 
als, including but not limited to Planning Com- 
mission approval of the Conversion pursuant to 
Section 41F.3(f). 

(2) Credits are building-specific and non- 
transferable, except that if the credit holder does 
not make diligent and good faith efforts within 
nine months of the lottery in support of Conver- 
sion, the credits will be revoked and reallocated 
to the standby list. Credits shall permanently 
expire if the applicant or standby-list recipient 
fails to diligently and in good faith pursue Con- 
version for any 12 consecutive months. 

(f) Conversion Process. 

(1) The notice and hearing requirements 
applicable to conditional use authorizations shall 
apply to all Planning Commission decisions un- 
der this Chapter. 



(2) Any party seeking Conversion under this 
Chapter shall submit a written Conversion ap- 
plication to the Planning Department contain- 
ing, at minimum, the following information: 

(i) The name and address of the building in 
which the conversions are proposed: 

(ii) The names and addresses of all owners 
and operators of said building: 

(iii) A description of the proposed Conver- 
sion including the nature of the Conversion, the 
total number of Large Tourist Hotel Rooms prior 
to and following Conversion, a description of the 
area and/or rooms to be Converted, including 
floor number and location, and the estimated 
total number of Condominium Units to be cre- 
ated: 

(iv) Preliminary drawings showing the ex- 
isting floor plans and proposed floor plans: 

(v) A description of the improveraents or 
changes proposed to be constructed or installed 
and the tentative schedule for start of construc- 
tion: 

(vi) Information specifying any changes to 
the subject building or buildings' inventory of 
rooms in the 5 yeeirs preceding the date of 
application for Conversion: 

(vii) The average rental rates of the rooms 
to be converted, calculated over the calendar 
year preceding the year of application for Con- 
version: 

(viii) Applicants for the lottery must pro- 
vide information demonstrating that the Conver- 
sion will not reduce the supply of Large Tourist 
Hotel Rooms based upon the most recent Base- 
line Inventory. 

(ix) Applicants for Ancillary Hotel Area Con- 
version must provide information demonstrating 
that the proposed Conversion will not result in 
loss of Large Tourist Hotel Rooms in the subject 
Large Tourist Hotel, including specifi/ing any 
proposed changes to the subject buildings' inven- 
tory of rooms planned in the 5 years following 
the date of application for Conversion. 

(x) Applicants for Conversion must pay the 
Planning Department a processing fee set by the 
Planning Director at a full cost recovery level. 



Supp. No. 15, March 2008 



Sec. 41R3. 



San Francisco - Administrative Code 



3962 



(3) The Zoning Administrator shall make a 
recommendation regarding the approval, denial, 
or approval with conditions of the Conversion 
application to the Planning Commission, based 
upon whether the proposed Conversion meets 
Planning Code requirements including, but not 
limited to, this Chapter. The Planning Commis- 
sion shall approve the Conversion, deny it, or 
approve it with conditions. Any member of the 
public wishing to appeal the decision of the 
Planning Commission must appeal the decision 
to the Board of Supervisors pursuant to the 
appeals process set forth in Section 308 of the 
Planning Code. (Added by Ord. 41-08, File No. 
071528, App. 3/24/2008) 

SEC. 41F.4. ENFORCEMENT. 

(a) The Department of Building Inspection, 
in consultation with the Departments of Plan- 
ning and Public Works, shall be responsible for 
enforcement of this Chapter as it may relate to 
physical alterations to a Large Tourist Hotel and 
may take any appropriate action within its pow- 
ers to enforce this Chapter, including, but not 
limited to, denial of any building, construction, 
or change of use permits. The Department of 
Public Works, in consultation with the Depart- 
ments of Building Inspection and Planning, shall 
be responsible for enforcement of this Chapter as 
it may relate to actions involving a subdivision 
under the Subdivision Map Act, California Gov- 
ernment Code sections 66410 et seq. 

(b) Civil Penalties. 

(1) The Department of Building Inspection 
or the Department of Public Works may recom- 
mend to the City Attorney initiation of a civil 
action hereunder. The City Attorney shall have 
the power to bring an action for injunctive relief 
to restrain or summary abatement to cause the 
correction or abatement of the violation of this 
article and for assessment and recovery of a civil 
penalty and reasonable attorney's fees for such 
violation, or other judicial relief hereunder. 

(2) Any person who violates this Article 
may be liable for a civil penalty, not to exceed 
$500.00 per room for each day such violation is 
committed or permitted to continue, which pen- 



alty shall be assessed and recovered in a civil 
action brought in the name of the people of the 
City by the City Attorney in any court of compe- 
tent jurisdiction. The City Attorney also may 
seek recovery of the attorney's fees and costs 
incurred in bringing a civil action pursuant to 
this Section. 

(c) Criminal Penalties. 

(1) The Department of Building Inspection 
or the Department of Public Works may recom- 
mend to the District Attorney initiation of a 
criminal action hereunder. 

(2) Any person who violates this Article 
shall be deemed guilty of a misdemeanor. Every 
violation determined to be a misdemeanor is 
punishable by a fine of not more than $1,000 or 
by imprisonment in the County Jail for a period 
of not more than six months, or by both such 
fines or imprisonments. (Added by Ord. 41-08, 
File No. 071528, App. 3/24/2008) 

SEC. 41F.5. SUNSET PROVISION. 

This Chapter shall automatically expire by 
operation of law 120 months after its initial 
effective date unless the Board of Supervisors, 
on or before that date, extends or re-enacts it. 
The City Attorney shall cause the Chapter to be 
removed from future editions of the Code. (Added 
by Ord. 41-08, File No. 071528, App. 3/24/2008) 

SEC. 41F.6. SEVERABILITY. 

In the event that a Court or agency of com- 
petent jurisdiction holds that a Federal or State 
law, rule or regulation invalidates any clause, 
sentence, paragraph or section of this ordinance 
or the application thereof to any person or cir- 
cumstances, it is the intent of the Board of 
Supervisors that the court or agency sever such 
clause, sentence, paragraph or section so that 
the remainder of this ordinance shall remain in 
effect. (Added by Ord. 41-08, File No. 071528, 
App. 3/24/2008) 



[The next page is 3967] 



Supp. No. 15, March 2008 



CHAPTER 42: INDUSTRIAL DEVELOPMENT AUTHORITY 



Sec. 42.1. Created Under Provisions of 

State Law. 
Sec. 42.2. Definitions. 

Sec. 42.3. Governing Body; Name. 

Sec. 42.4. Selection of Board. 

Sec. 42.5. Terms of Office. 

Sec. 42.6. Chairperson of Board. 

Sec. 42.7. Organizational Meeting. 

Sec. 42.8. Powers and Limitations of 

Authority. 
Sec. 42.9. Officers, Employees and Agents. 

Sec. 42.10. Secretary. 
Sec. 42.11. Attorney. 
Sec. 42.12. Oath of Office. 
Sec. 42.13. Manner of Action by Authority. 
Sec. 42.14. Quorum. 
Sec. 42.15. Adoption of Resolution and 

Motions by Majority Vote. 
Sec. 42.16. Taking of Ayes and Noes, Entry 

upon Minutes. 
Sec. 42.17. Signing of Resolutions; 

Attestation. 

Sec. 42.18. Establishment of Rules. 

Sec. 42.19. Administration of Oath and 

Affirmations. 
Sec. 42.20. Duties of Chairperson. 
Sec. 42.21. Duties of Secretary. 

Sec. 42.22. Quarterly Reports to Board of 
Supervisors. 

SEC. 42.1. CREATED UNDER 
PROVISIONS OF STATE LAW. 

There is need for a public corporation to be 
known as the Industrial Development Authority 
of the City and County of San Francisco, to 
function in the City and County under the pro- 
visions of the California Industrial Development 
Financing Act, Title 10 (commencing with Sec- 
tion 91500) of the Government Code. 

An Industrial Development Authority shall 
be created and constituted at the same time and 



in the same manner prescribed by the California 
Industrial Development Financing Act of said 
code. (Added by Ord. 595-80, App. 12/26/80) 

SEC. 42.2. DEFINITIONS. 

Unless the context otherwise requires, the 
definitions in this section shall govern the con- 
struction of this chapter, as follows: 

(a) "Act" means the California Industrial 
Development Financing Act, Title 10 (commenc- 
ing with Section 91500) of Government Code. 

(b) "Authority" means the Industrial Devel- 
opment Authority of the City and County of San 
Francisco. 

(c) "Board" means the Board of Directors of 
the Authority. 

(d) "Officer" means the Chairperson and 
members of the Board, a secretary, a treasurer, 
and such assistants for the secretary and the 
treasurer as the Board may appoint. (Added by 
Ord. 595-80, App. 12/26/80) 

SEC. 42.3. GOVERNING BODY; NAME. 

There shall be a five member board which 
shall be known as the "Industrial Development 
Authority of the Citj^ and County of San Fran- 
cisco Board of Directors." (Added by Ord. 595-80, 
App. 12/26/80) 

SEC. 42.4. SELECTION OF BOARD. 

For purposes of selecting original members of 
the Board and each replacement to the Board as 
may be required from time to time, the Mayor 
shaill present to the Board of Supervisors of the 
City and County of San Francisco the name of 
one person for each vacancy of the Board for 
consideration for appointment to the Board by 
the Board of Supervisors. The Board of Supervi- 
sors, alone, shall officially appoint members of 
the Board. (Added by Ord. 595-80, App. 12/26/80) 



3967 



Sec. 42.5. 



San Francisco - Administrative Code 



3968 



SEC. 42.5. TERMS OF OFFICE. 

At the time of the appointment of the first 
directors, the Board of Supervisors shall divide 
the directors into three groups containing as 
nearly equal whole numbers as possible. The 
first term of the directors included in the first 
group shall be approximately one year; the first 
term of the directors in the second group shall be 
approximately two years; the first term of the 
directors included in the third group shall be 
approximately three years, as determined by the 
Board of Supervisors, and thereafter the terms of 
all directors shall be three years. Directors shall 
be eligible for reappointment for an unlimited 
number of terms. (Added by Ord. 595-80, App. 
12/26/80) 

SEC. 42.6. CHAIRPERSON OF BOARD. 

The authority shall have a chairperson of its 
board who shall be elected by the members of the 
Board from among its membership. (Added by 
Ord. 595-80, App. 12/26/80) 

SEC. 42.7. ORGANIZATIONAL 
MEETING. 

Within 90 days after the effective date of this 
ordinance, the Board shall meet and organize as 
a board of the authority (Added by Ord. 595-80, 
App. 12/26/80) 

SEC. 42.8. POWERS AND LIMITATIONS 
OF AUTHORITY. 

The authority shall exercise all powers, and 
be subject to all limitations, prescribed in the 
Act. Direct and indirect expenses of operation of 
the authority shall be paid exclusively from 
proceeds of bonds issued pursuant to the Act and 
this ordinance, or from fees charged by the 
authority for applications and other filings. (Added 
by Ord. 595-80, App. 12/26/80) 

SEC. 42.9. OFFICERS, EMPLOYEES AND 
AGENTS. 

The authority may appoint officers, employ- 
ees, and agents as prescribed in the Act and not 
otherwise inconsistent with this chapter. (Added 
by Ord. 595-80, App. 12/26/80) 



SEC. 42.10. SECRETARY. 

The authority shall appoint a secretary. (Added 
by Ord. 595-80, App. 12/26/80) 

SEC. 42.11. ATTORNEY. 

The City Attorney of the City and County of 
San Francisco shall serve as attorney to the 
authority (Added by Ord. 595-80, App. 12/26/80) 

SEC. 42.12. OATH OF OFFICE. 

Each officer of the authority before entering 
upon the duties of office shall take and subscribe 
to the official oath and file it with the secretary of 
the authority. The oath of office may be before 
the secretary, any member of the authority, or 
any officer authorized by law to administer oaths. 
(Added by Ord. 595-80, App. 12/26/80) 

SEC. 42.13. MANNER OF ACTION BY 
AUTHORITY. 

The authority shall act in the manner and be 
subject to the Charter of the City and County of 
San Francisco and ordinances enacted thereto. 
(Added by Ord. 595-80, App. 12/26/80) 

SEC. 42.14. QUORUM. 

A majority of the Board shall constitute a 
quorum for the transaction of business. (Added 
by Ord. 595-80, App. 12/26/80) 

SEC. 42.15. ADOPTION OF 
RESOLUTION AND MOTIONS BY 
MAJORITY VOTE. 

No resolution or motion shall be passed or 
become effective without the affirmative votes of 
at least a majority of the members of the Board. 
(Added by Ord. 595-80, App. 12/26/80) 

SEC. 42.16. TAKING OF AYES AND 
NOES, ENTRY UPON MINUTES. 

The ayes and noes shall be taken upon the 
passage of all resolutions or motions and entered 
upon the minutes of the Board. (Added by Ord. 
595-80, App. 12/26/80) 



3969 Industrial Development Authority Sec. 42.22. 



SEC. 42.17. SIGNING OF RESOLUTIONS; the annual budget of the City and County of San 
ATTESTATION. Francisco. (Added by Ord. 595-80, App. 12/26/80) 

All resolutions shall be signed by the Chair- 
person and attested by the Secretary. (Added by 
Ord. 595-80, App. 12/26/80) 

SEC. 42.18. ESTABLISHMENT OF 
RULES. 

Except for any applicable provisions of the 
Act prescribing rules for the proceedings of the 
authority, the authority shall establish rules for 
its proceedings. The authority shall submit to 
the Board of Supervisors for approval guidelines 
and priority businesses and types of facilities to 
be provided financing under this ordinance. (Added 
by Ord. 595-80, App. 12/26/80) 

SEC. 42.19. ADMINISTRATION OF 
OATHS AND AFFIRMATIONS. 

Each member of the Board, or the Secretary, 
may administer oaths and affirmations in con- 
nection with the taking of testimony at any 
hearing, investigation, or other matters pending 
before the authority. (Added by Ord. 595-80, App. 
12/26/80) 

SEC. 42.20. DUTIES OF CHAIRPERSON. 

The Chairperson shall: (a) sign all contracts 
on behalf of the authority; (b) perform other 
duties imposed by the Board. (Added by Ord. 
595-80, App. 12/26/80) 

SEC. 42.21. DUTIES OF SECRETARY. 

The Secretary shall: (a) Countersign all con- 
tracts on behalf of the authority; (b) perform 
other duties imposed by the Board. (Added by 
Ord. 595-80, App. 12/26/80) 

SEC. 42.22. QUARTERLY REPORTS TO 
BOARD OF SUPERVISORS. 

The authority shall file with the Board of 
Supervisors at quarterly intervals a detailed 
report of all its transactions, including a state- 
ment of all revenues and expenditures. The 
budget of the authority shall be transmitted to 
the Board of Supervisors and approved annually 
by the Board of Supervisors in conjunction with 



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San Francisco - Administrative Code 



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CHAPTER 43: MUNICIPAL FINANCE LAW 

Article Page 

I. RESIDENTIAL MORTGAGE REVENUE BOND LAW 3981 

IL ECONOMIC DEVELOPMENT BOND LAW 3995 

III. AFFORDABLE HOUSING AND HOME OWNERSHIP BOND PROGRAM. 4011 

IV. PUBLIC UTILITIES COMMISSION ENTERPRISE REVENUE BOND 

ELECTION PROCEDURE 4023 

V. PUBLIC UTILITIES COMMISSION SHORT-TERM INDEBTEDNESS. . 4033 

VI. SAN FRANCISCO REFUNDING REVENUE BOND ACT 4043 

VIL SAN FRANCISCO BOND FACILITATION ACT 4051 

VIH. REFUNDING BOND SAVINGS TEST ACT 4061 

IX. HOUSING BOND APPROVAL POLICY 4063 



3979 Supp. No. 5, February 2007 



[INTENTIONALLY LEFT BLANK] 



Supp. No. 5, February 2007 



ARTICLE I: RESIDENTIAL MORTGAGE REVENUE BOND LAW 



Title 1 - General Provisions And 







Definitions 


Sec. 


43.1.1. 


Title. 


Sec. 


43.1.2. 


Purpose. 


Sec. 


43.1.3. 


Full Authority. 


Sec. 


43.1.4. 


Additional Authority. 


Sec. 


43.1.5. 


Definitions. 


Sec. 


43.1.6. 


No Limitation on 
Appropriations . 




Titles 


5 - Financing Residences 


Sec. 


43.1.7. 


Loans for Residences. 


Sec. 


43.1.8. 


Acquisition, Construction, 
Leasing and Selling of 
Residences. 


Sec. 


43.1.9. 


Fees. 


Sec. 


43.1.10. 


Insurance. 


Sec. 


43.1.11. 


Rents and Charges. 


Sec. 


43.1.12. 


Security for Loans. 


Sec. 


43.1.13. 


Professional Services. 


Sec. 


43.1.14. 


Equal Opportunity. 


Sec. 


43.1.15. 


Public Works Requirements 
Inapplicable. 


Sec. 


43.1.16. 


Regulations. 


Sec. 


43.1.17. 


Additional Powers. 
Title 3 - Bonds 


Sec. 


43.1.18. 


Issuance of Bonds. 


Sec. 


43.1.19. 


Bonds Not Debt of City 


Sec. 


43.1.20. 


Cost of Issuance; Reserve 
Funds; Capitalized Bond 
Interest. 


Sec. 


43.1.21. 


Resolution and Bond Terms. 


Sec. 


43.1.22. 


Bond Provisions. 


Sec. 


43.1.23. 


Pledge of Revenues, Money or 
Assets; Lien. 


Sec. 


43.1.24. 


No Personal Liability 


Sec. 


43.1.25. 


Purchase of Bonds by City. 


Sec. 


43.1.26. 


Refunding Bonds. 



Sec. 43.1.27. Validity of Bonds. 

Title 4 - Supplemental Provisions 

Sec. 43.1.28. Liberal Construction. 

Sec. 43.1.29. Omissions Not to Affect Vahdity 

of Bonds. 
Sec. 43.1.30. Article Controlling. 
Sec. 43.1.31. Severability 

TITLE 1 - GENERAL PROVCSIONS AND 
DEFINITIONS 

SEC. 43.1.1. TITLE. 

This Article may be cited as the Residential 
Mortgage Revenue Bond Law. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.1.2. PURPOSE. 

The Board of Supervisors hereby finds and 
declares that it is necessary, essential, a public 
pui^pose and a municipal affair for the City and 
County to make, purchase and contract for the 
making of below-market-interest-rate loans for 
the purpose of providing mortgage financing for 
the acquisition, construction, or rehabilitation of 
housing in the City and County to encourage the 
availability of adequate housing and home fi- 
nance for persons and families, including those 
of low or moderate income, and to develop viable 
communities by providing decent housing and an 
enhanced living environment. 

The City and County can promote such inter- 
ests pursuant to this Article without adversely 
affecting areas outside the City and County and 
without conflicting with efforts by the State of 
California to solve problems of statewide con- 
cern. (Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.1.3. FULL AUTHORITY. 

This Article is full authority for the issuance 
of bonds by the City and County for the purposes 
specified herein. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 



3981 



Sec. 43.1.4. 



San Francisco - Administrative Code 



3982 



SEC. 43.1.4. ADDITIONAL AUTHORITY. 

This Article shall be deemed to provide a 
complete, additional, and alternative method for 
doing the things authorized thereby, and shall be 
regarded as supplemental and additional to the 
powers conferred by other laws. The issuance of 
bonds under the provisions of this Article need 
not comply with the requirements of any other 
law applicable to the issuance of bonds. 

The purposes authorized hereby may be ef- 
fectuated and bonds may be issued for any such 
purposes under this Article notwithstanding that 
any other law may provide for such purposes or 
for the issuance of bonds for like purposes and 
without regard to the requirements, restrictions, 
limitations or other provisions contained in any 
other law. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.1.5. DEFINITIONS. 

Unless the context otherwise requires, the 
terms defined in this Article shall have the 
following meanings: 

(a) "Board of Supervisors" means the Board 
of Supervisors of the City and County of San 
Francisco. 

(b) "Bonds" means any bonds, notes, certifi- 
cates, debentures or other obligations issued by 
the City and County pursuant to this Article and 
payable as provided in this Article. 

(c) "City" means the City and County of San 
Francisco. 

(d) "Cost" means the total of all costs in- 
curred by or on behalf of a participating party to 
carry out all works and undertakings and to 
obtain all rights and powers necessary or inci- 
dent to the acquisition, construction, or rehabili- 
tation of a residence. "Cost" may include all costs 
of issuance of bonds for such purposes and costs 
for construction undertaken by a participating 
party as its own contractor. 

(e) "Participating party" means any indi- 
vidual, association, corporation, partnership or 
other entity which is approved by the City and 
County to undertake the financing of the costs of 
a residence pursuant to this Article. 



(f) "Residence" means real property im- 
proved with a residential structure. "Residence" 
includes condominium and cooperative dwelling 
units, real property improved with single-family 
residential structures, and real property im- 
proved with multi-family residential structures. 

(g) "Revenues" means amounts received by 
the City and County as pajnnents of principal, 
interest, and all other charges with respect to a 
loan under this Article; as pajnnents under a 
lease, sublease or sale agreement with respect to 
a residence; as proceeds received by the City and 
County from mortgage, hazard or other insur- 
ance on or with respect to such a loan (or any 
property securing such loan), lease, sublease or 
sale agreement, all other rents, charges, fees, 
income and receipts derived by the City and 
County from the financing of a residence under 
this Article; any amounts received by the City 
and County as investment earnings on moneys 
deposited in any fund securing bonds and such 
other legally available moneys as the Board of 
Supervisors may, in its discretion, lawfully des- 
ignate as revenues, resolution, or any indenture 
authorized by such resolution to be entered into 
by the City and County (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.1.6. NO LIMITATION ON 
APPROPRIATIONS. 

None of the Revenues, as defined by this 
Article, shall be taken into account in any man- 
ner in determining the City and County's com- 
pliance with Article XIIIB of the California Con- 
stitution. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

TITLE 2 - FINANCING RESIDENCES 

SEC. 43.1.7. LOANS FOR RESIDENCES. 

The City and County may use the proceeds of 
bonds to make, purchase, or otherwise contract 
for the making of, a mortgage or other secured or 
unsecured loan, upon such terms and conditions 
as the City and County shall deem proper, to any 
participating party for the costs of a residence. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 



3983 



Municipal Finance Law - Residential Mortgage Revenue Bond Law Sec. 43.1.14. 



SEC. 43.1.8. ACQUISITION, 
CONSTRUCTION, LEASING AND 
SELLING OF RESIDENCES. 

The City and County may use the proceeds of 
bonds, or other moneys provided by or on behalf 
of a participating party, to acquire, construct, 
enlarge, remodel, renovate, alter, improve, fur- 
nish, equip and lease as lessee a residence solely 
for the purpose of selling or leasing as lessor 
such residence to such participating party, and 
may contract with such participating party to 
undertake on behalf of the City and County to 
construct, enlarge, remodel, renovate, alter, im- 
prove, furnish and equip such residence. 

The City and County may sell or lease, upon 
such terms and conditions as the City and County 
shall deem proper, to a participating party any 
residence owned by the City and County under 
this Article, including a residence conveyed to 
the City and County in connection with a financ- 
ing under this Article but not being financed 
hereunder. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.1.9. FEES. 

The City and County may charge participat- 
ing parties application, commitment, financing 
and other fees, in order to recover all adminis- 
trative and other costs and expenses incurred in 
the exercise of the powers and duties conferred 
by this Article. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.1.10. INSURANCE. 

The City and County may obtain, or, aid in 
obtaining, from any department or agency of the 
United States or of the State of California or any 
private company, any insurance or guarantee as 
to, or of, or for the payment or repayment of, 
interest or principal, or both, or any part thereof, 
on any loan, lease or sale obligation or any 
instrument evidencing or securing the same, 
made or entered into pursuant to the provisions 
of this Article; and may accept payment in such 
manner and form as provided therein in the 
event of default by a participating party, and 



may assign any such insurance or guarantee as 
security for bonds. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.1.11. RENTS AND CHARGES. 

The City and County may fix rents, pay- 
ments, fees, charges and interest rates for financ- 
ing under this Article and may agree to revise 
from time to time such rents, pa3rments, fees, 
charges and interest rates to reflect changes in 
interest rates on bonds, losses due to defaults or 
changes in other expenses related to this Article, 
including City and County administrative ex- 
penses. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.1.12. SECURITY FOR LOANS. 

The City and County may hold deeds of trust 
or mortgages or security interests in personal 
property as security for loans under this Article 
and may pledge or assign the Scime as security 
for repayment of bonds. Such deeds of trust, 
mortgages or security interests, or any other 
interest of the City and County in any residence, 
may be assigned to, and held on behalf of the 
City and County by any bank or trust company 
appointed to act as trustee by the City and 
County in any resolution or indenture providing 
for the issuance of bonds. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 



SEC. 43.1.13. 
SERVICES. 



PROFESSION.\L 



The City and County may contract for such 
en^jineering, architectural, financial, accounting, 
legal or other professional services as may be 
necessary in the judginent of the City and County 
for the purposes of this Article. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.1.14. EQUAL OPPORTUNITY. 

The City and County shall require that con- 
tractors and subcontractors engaged in the con- 
struction of facilities financed under this Article 
shall provide equal opportunity for employment, 
without discrimination as to race, marital sta- 



Sec. 43.1.14. 



San Francisco - Administrative Code 



3984 



tus, sex, color, religion, national origin or ances- 
try. (Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.1.15. PUBLIC WORKS 
REQUIREMENTS INAPPLICABLE. 

Except as specifically provided in this Article, 
the acquisition, construction, or rehabilitation of 
a residence financed under this Article shall not 
be subject to any requirements relating to build- 
ings, works or improvements owned or operated 
by the City and County, and any requirement of 
public competitive bidding or other procedural 
restriction imposed on the award of contracts for 
acquisition or construction of a City and County 
building, work or improvement or to the lease, 
sublease, sale or other disposition of City and 
County property shall not be applicable to any 
action taken under this Article. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.1.16. REGULATIONS. 

The Mayor of the City and County, or a 
person designated by the Mayor, shall prepare 
and submit to the Board of Supervisors for 
approval, rules or regulations, or both, permitted 
under this Article. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.1.17. ADDITIONAL POWERS. 

In addition to all other powers specifically 
granted by this Article, the City and County may 
do all things necessary or convenient to carry out 
the purposes of this Article, provided, however, 
that the City and County shall not have the 
power to operate a residence financed under this 
Article as a business, except temporarily in the 
case of a default by a participating party. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 

TITLE 3 ■ BONDS 

SEC. 43.1.18. ISSUANCE OF BONDS. 

The City and County may, from time to time, 
issue bonds for any of the purposes specified in 
Sections 142(d) and 143 of the Internal Revenue 
Code of 1986. Bonds shall be negotiable instru- 



ments for all purposes, subject only to the provi- 
sions of such bonds for registration. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.1.19. BONDS NOT DEBT OF 
CITY. 

Every issue of bonds shall be a limited obli- 
gation of the City and County payable from all or 
any specified part of the revenues and the mon- 
eys and assets authorized in this Article to be 
pledged or assigned to secure pajonent of bonds. 
Such revenues, moneys or assets shall be the 
sole source of repa3mient of such issue of bonds. 
Bonds issued under the provisions of this Article 
shall not be deemed to constitute a debt or 
liability of the City and County or a pledge of the 
faith and credit of the City and County but shall 
be payable solely from specified revenues, mon- 
eys, and assets. The issuance of bonds shall not 
directly, indirectly, or contingently obligate the 
City and County to levy or pledge any form of 
taxation or to make any appropriation for their 
payment. 

All bonds shall contain on the face thereof a 
statement to the following effect: Neither the 
faith and credit nor the taxing power of the City 
and County is pledged to the pajmient of the 
principal of or premium or interest on this bond. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.1.20. COST OF ISSUANCE; 
RESERVE FUNDS; CAPITALIZED BOND 
INTEREST. 

In determining the amount of bonds to be 
issued, the City and County may include all costs 
of the issuance of such bonds, reserve funds and 
capitalized bond interest. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.1.21. RESOLUTION AND BOND 
TERMS. 

Bonds may be issued as serial bonds, term 
bonds, installment bonds or pass-through certifi- 
cates or any combination thereof. Bonds shall be 
authorized by resolution of the Board of Super- 
visors and shall bear such date or dates; mature 
at such time or times; bear interest at such fixed 



3985 Municipal Finance Law - Residential Mortgage Revenue Bond Law Sec. 43.1.24. 



or variable rate or rates; be payable at such time 
or times; be in such denominations, be in such 
form, either coupon or registered, carry such 
registration privileges, be executed in such man- 
ner, be payable in lawful money of the United 
States of America at such place or places, be 
subject to such terms of redemption and have 
such other terms and conditions as such resolu- 
tion, or any indenture authorized by such reso- 
lution to be entered into by tile City and County, 
may provide. Bonds may be sold at either public 
or private sale and for such prices as the City 
and County shall determine. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.1.22. BOND PROVISIONS. 

Any resolution authorizing any bonds or any 
issue of bonds, or any indenture authorized by 
such resolution to be entered into by the City and 
County, may contain provisions respecting any of 
the following terms and conditions, which shall 
be a part of the contract with the holders of such 
bonds: 

(a) The terms, conditions and form of such 
bonds and the interest and principal to be paid 
thereon; 

(b) Limitations on the uses and purposes to 
which the proceeds of sale of such bonds may be 
applied, and the pledge or assignment of such 
proceeds to secure the payment of such bonds; 

(c) Limitations on the issuance of additional 
parity bonds, the terms upon which additional 
parity bonds may be issued and secured, and the 
refunding of outstanding bonds; 

(d) The setting aside of reserves, sinking 
funds and other funds and the regulation and 
disposition thereof; 

(e) The pledge or assignment of all or any 
part of the revenues and of any other moneys or 
assets legally available therefor and the use and 
disposition of such revenues, moneys and assets; 

(f) Limitation on the use of revenues for 
operating, administration or other expenses of 
the City and County; 

(g) Specification of the acts or omissions to 
act which shall constitute a default in the duties 
of the City and County to holders of such bonds. 



and providing the rights and remedies of such 
holders in the event of default, including any 
limitations on the right of action by individual 
bondholders; 

(h) The appointment of a corporate trustee 
to act on behalf of the City and County and the 
holders of its bonds, the pledge or assignment of 
loans, deeds of trust, mortgages, leases, sub- 
leases, sale contracts and any other contracts to 
such trustee, and the rights of such trustee; 

(i) The procedure, if any, by which the terms 
of any contract with bondholders may be cimended 
or abrogated, the amount of such bonds the 
holders of which must consent thereto, and the 
manner in which such consent may be given; and 

(j) Any other provisions which the Board of 
Supervisors may deem reasonable and proper for 
the purposes of this Article and the security of 
the bondholders. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.1.23. PLEDGE OF REVENUES, 
MONEY OR ASSETS; LIEN. 

Any pledge of revenues or other moneys or 
assets pursuant to the provisions of this Article 
shall be valid and binding from the time such 
pledge is made. Revenues, monej^s and assets so 
pledged and thereafter received by the City and 
County shall immediately be subject to the lien 
of such pledge without any physical delivery 
thereof or further act; and the lien of any such 
pledge shall be valid and binding as against all 
parties having claims of any kind in tort, con- 
tract, or otherwise against the City and County, 
irrespective of whether such parties have notice 
thereof. Neither the resolution nor any inden- 
ture by which a pledge is created need be filed or 
recorded except in the records of the City and 
County (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.1.24. NO PERSONAL LIAI5ILITY. 

Neither the members of the Board of Super- 
visors, the officers or employees of the City and 
County, nor any person executing any bonds 
shall be liable personally on the bonds or be 



Sec. 43.1.24. 



San Francisco - Administrative Code 



3986 



subject to any personal liability or accountability 
by reason of the issuance thereof. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.1.25. PURCHASE OF BONDS BY 
CITY. 

The City and County shall have the power 
out of any funds available therefor to purchase 
its bonds. The City and County may hold, pledge, 
cancel, or resell such bonds, subject to and in 
accordance with agreements with the bondhold- 
ers. (Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.1.26. REFUNDING BONDS. 

The City and County may issue bonds under 
this Article for the purpose of refunding any 
bonds then outstanding. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000; amended by 
Ord. 212-00, File No. 001331, App. 9/1/2000) 

SEC. 43.1.27. VALIDITY OF BONDS. 

The validity of the authorization and issu- 
ance of any bonds is not dependent on and shall 
not be affected in any way by any proceedings 
taken by the City and County for the approval of 
any financing or the entering into of any agree- 
ment, or by the failure to provide financing or 
enter into any agreement, for which bonds are 
authorized to be issued under this Article. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 

TITLE 4 - SUPPLEMENTAL PROVISIONS 

SEC. 43.1.28. LIBERAL 
CONSTRUCTION. 

This Article, being necessary for the welfare 
of the City and County and its inhabitants, shall 
be liberally construed to effect its purposes. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.1.29. OMISSIONS NOT TO 
AFFECT VALIDITY OF BONDS. 

Any omission of any officer or the City and 
County in proceedings under this Article or any 
other defect in the proceedings shall not invali- 



date such proceedings or the bonds issued pur- 
suant to this Article. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.1.30. ARTICLE CONTROLLING. 

To the extent that the provisions of this 
Article are inconsistent with the provisions of 
any general statute or special act or parts thereof 
the provisions of this Article shall be deemed 
controlling. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.1.31. SEVERABILITY. 

If any provision of this Article or the applica- 
tion thereof to any person or circumstance is held 
invalid, such invalidity shall not affect any other 
provision or application of this Article which can 
be given effect without the invalid provision or 
application; and to this end the provisions of this 
Article are declared to be severable. The Board of 
Supervisors hereby declares that it would have 
adopted and passed this Article and each section, 
subsection, sentence, clause, phrase and word 
hereof, irrespective of the fact that any one or 
more of the other sections, subsections, sen- 
tences, clauses, phrases or words hereof be de- 
clared invalid or unconstitutional. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 



[The next page is 3995] 



ARTICLE II: ECONOMIC DEVELOPMENT BOND LAW 



Title I - General Provisions and 
Definitions 

Sec. 43.2.1. Title. 
Sec. 43.2.2. Purpose. 
Sec. 43.2.3. Full Authority. 
Sec. 43.2.4. Additional Authority. 
Sec. 43.2.5. Definitions. 
Sec. 43.2.6. No Limitation on 
Appropriations . 

Title 2 - Financing Facilities 

Sec. 43.2.7. Loans for Facilities. 

Sec. 43.2.8. Acquisition, Construction, 

Leasing and Selling of 

Facilities. 
Sec. 43.2.9. Applications for Approval. 
Sec. 43.2.10. Fees. 
Sec. 43.2.11. Insurance. 
Sec. 43.2.12. Rents and Charges. 
Sec. 43.2.13. Security for Loans. 
Sec. 43.2.14. Professional Services. 
Sec. 43.2.15. Public Works Requirements 

Inapplicable. 

Sec. 43.2.16. Additional Powers. 

Title 3 - Bonds 

Sec. 43.2.17. Issuance of Bonds. 

Sec. 43.2.18. Bonds Not Debt of City 

Sec. 43.2.19. Bond Terms. 

Sec. 43.2.20. Bond Provisions. 

Sec. 43.2.21. Pledge of Revenues, Money or 

Assets; Lien. 
Sec. 43.2.22. No Personal Liability 
Sec. 43.2.23. Purchase of Bonds by City 
Sec. 43.2.24. Refunding Bonds. 
Sec. 43.2.25. Bond Anticipation Notes. 
Sec. 43.2.26. Validity of Bonds. 

Title 4 - Supplemental Provisions 

Sec. 43.2.27. Liberal Construction. 



Sec. 43.2.28. Omissions Not to Affect Validity 

of Bonds. 
Sec. 43.2.29. Article Controlling. 
Sec. 43.2.30. Severability 

TITLE 1 - GENERAL PROVESIONS AND 
DEFINITIONS 

SEC. 43.2.1. TITLE. 

This Article may be cited as the Economic 
Development Revenue Bond Law of the City and 
County of San Francisco. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.2.2. PURPOSE. 

The Board of Supervisors hereby finds and 
declares that it is necessary and essential to the 
well-being of the City and Countj^ that it provide 
financial assistance to promote the economic 
development of the City and County. Such eco- 
nomic development will serve the following pub- 
lic purposes and municipal affairs of the City and 
County: 

(a) The full and gainful emplojonent of resi- 
dents of the City and County; 

(b) The full and efficient utilization and 
modernization of existing industrial, coramercial 
and business facilities; 

(c) The development of new industrial, com- 
mercial and business facilities; 

(d) The growth of the City and County's tax 
base through increased property values and con- 
suraer purchasing; 

(e) The reduction of the need for and costs of 
welfare and other remedial progirams; 

(f) The reduction of urban ills, such as crime, 
attributable in part to inadequate economic op- 
portunities; 

(g) The stability and diversification of the 
City and County's economy; 



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Sec. 43.2.2. 



San Francisco - Administrative Code 



3996 



(h) The lowering of the cost to City and 
County consumers of necessary goods and ser- 
vices; 

(i) The environmentally optimum disposi- 
tion of waste materials of the City and County; 
and 

(j) The enhancement of the general eco- 
nomic prosperity, health, safety and welfare of 
the residents of the City and County. 

The availability of the financial assistance 
authorized by this Article will serve those pur- 
poses and the general plan of the City and 
County by providing private enterprises and the 
City and County with new methods of financing 
capital outlays in the City and County and by 
ensuring that economic development within the 
City and County will reflect the local community's 
needs and objectives and will be environmentally 
optimum with respect to both the physical and 
social environment of the City and County. The 
City and County shall promote such public inter- 
ests pursuant to this Article without adversely 
affecting areas outside the City and County and 
without conflicting with efforts by the State of 
California to solve problems of statewide con- 
cern. (Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.2.3. FULL AUTHORITY. 

This Article is full authority for the issuance 
of Bonds by the City and County for any of the 
purposes specified herein. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.2.4. ADDITIONAL AUTHORITY. 

This Article shall be deemed to provide a 
complete, additional, and alternative method for 
doing the things authorized thereby, and shall be 
regarded as supplemental and additional to the 
powers conferred by other laws. The issuance of 
Bonds under the provisions of this Article need 
not comply with the requirements of any other 
law applicable to the issuance of bonds. The 
purposes authorized hereby may be effectuated 
and Bonds are authorized to be issued for any 
such purposes under this Article notwithstand- 
ing that any other law may provide for such 



purposes or for the issuance of bonds for like 
purposes and without regard to the require- 
ments, restrictions, limitations or other provi- 
sions contained in any other law. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.5. DEFINITIONS. 

Unless the context otherwise requires, the 
terms defined in this Article shall have the 
following meanings: 

(a) "Board" means the Board of Supervisors 
of the City and County of San Francisco. 

(b) "Bonds" means the bonds, notes, certifi- 
cates, debentures and other obligations and evi- 
dences of indebtedness authorized to be issued 
by the City and County pursuant to this Article 
and payable as provided in this Article. 

(c) "City" means the City and County of San 
Francisco. 

(d) "Cost" means the total of all costs in- 
curred by or on behalf of a Participating Party to 
carry out all works and undertakings and to 
obtain all rights and powers necessary or inci- 
dent to the acquisition, construction, installa- 
tion, reconstruction, rehabilitation or improve- 
ment of a Facility. "Cost" may include all costs of 
issuance of bonds for such purposes, costs for 
construction undertaken by a Participating Party 
as its own contractor, capitalized bond interest, 
reserves for debt service and for repairs, replace- 
ments, additions and improvements to a Facility, 
and other working capital incident to the opera- 
tion of a Facility. 

(e) "Facility" means any of the facilities, 
places or buildings within, serving or otherwise 
substantially connected to the City and County 
which are, or will be, maintained and operated 
for industrial, manufacturing, research and de- 
velopment, commercial or business purposes, or 
energy uses, or any combination of such pur- 
poses and uses, and conform to the general plan 
of the City and County, are approved by the City 
and County for the financing authorized by this 
Article, such approval being given only when the 
City and County finds and determines that such 
financing (1) will substantially promote one or 
more of the public purposes listed in Section 



3997 



Municipal Finance Law - Economic Development Bond Law 



Sec. 43.2.8. 



43.2.2, and (2) will not have the proximate effect 
of the relocation of any substantial operations of 
the Participating Party from one area of the 
State to another or the abandonment of any 
substantial operations of such Participating Party 
within other areas of the State, or, if such financ- 
ing will have either of such effects, then such 
financing is reasonably necessary to prevent the 
relocation of any substantial operations of the 
Participating Party from an area within the 
State to an area outside the State. 

A "Facility" may also be an activity which 
may otherwise be financed pursuant to the Cali- 
fornia Industrial Development Financing Act (Gov- 
ernment Code Section 91500 et seq.) to the 
extent said Act permits the financing of such 
activity under alternative authority. "Facility" 
includes, without limitation, real and personal 
property, land, buildings, structures, fixtures, 
machinery and equipment and all such property 
related to or required or useful for the operation 
of a Facility. Facility does not include any facil- 
ity, place or building used or to be used primarily 
for sectarian instruction or study or as a place for 
devotional activities or religious worship. 

(f) "Participating Party" means any indi- 
vidual, association, corporation, partnership or 
other entity which is approved by the City and 
County to undertake the financing of the Costs of 
a Facility for which this Article authorizes the 
issuance of Bonds. 

(g) "Responsible Department" means the 
Mayor except that, unless otherwise specified by 
the Mayor, Responsible Department for propos- 
als for financing under this Article of any Facility 
described in Section 103(b)(4) of the Internal 
Revenue Code of 1954, as amended, shall be that 
department, office, commission or authority of 
the City and County having jurisdiction over the 
proposed Facility. 

(h) "Revenue" means amounts received by 
the City and County as payments of principal, 
interest, and all other charges with respect to a 
loan authorized by this Article, as payments 
under a lease, sublease or sale agreement with 
respect to a Facility, as proceeds received by the 
City and County from mortgage, hazard or other 



insurance on or with respect to a loan (or prop- 
erty securing such loan), lease, sublease or sale 
agreement all other rents, charges, fees, income 
and receipts derived by the City and County 
from the financing of a Facility authorized by 
this Article, any amounts received by the City 
and County as investment earnings on moneys 
deposited in any fund securing the Bonds, and 
such other legally available moneys as the Board 
of Supervisors may, in its discretion, lawfully 
designate as Revenues. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.2.6. NO LIMITATION ON 
APPROPRIATIONS. 

Revenues, as defined by this ^Article, and the 
expenditure of such Revenues shall not be taken 
into account in any manner in determining the 
City and County's compliance with Article XIIIB 
of the California Constitution. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

TITLE 2 - FINANCING FACILITIES 

SEC. 43.2.7. LOANS FOR FACILITIES. 

The City and County is hereby authorized to 
make, purchase, or otherwise contract for the 
making of, a mortgage or other secured or unse- 
cured loan, with the proceeds of Bonds and upon 
such terms and conditions as the City and County 
shsill deem proper, to any Participating Party for 
the Costs of a Facihty (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.2.8. ACQUISITION, 
CONSTRUCTION, LEASING i\ND 
SELLING OF FACILITIES. 

The City and County is authorized to ac- 
quire, construct, enkirge, remodel, renovate, al- 
ter, improve, furnish, equip and lease as lessee, 
with the proceeds of Bonds, a Facility solely for 
the purpose of selling or leasing as lessor such 
Facility to such Participating Party, and is fur- 
ther authorized to make any contracts for such 
pui-poses. The City and County is also autho- 
rized to contract with such Participating Party to 



Sec. 43.2.8. 



San Francisco - Administrative Code 



3998 



undertake on behalf of the City and County to 
construct, enlarge, remodel, renovate, alter, im- 
prove, furnish and equip such Facility. 

The City and County is authorized to sell or 
lease, upon such terms and conditions as the 
City and County shall deem proper, to a Partici- 
pating Party any Facility owned by the City and 
County under this Article, including a Facility 
conveyed to the City and County in connection 
with a financing authorized by this Article but 
not being financed hereunder. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.9. APPLICATIONS FOR 
APPROVAL. 

Any person may apply to the Responsible 
Department for approval as a Participating Party 
and for approval of a Facility for financing under 
this Article. Applications shall set forth such 
information as the Responsible Department may 
require in order to enable the Responsible De- 
partment to evaluate the applicant, the Facility 
and its proposed costs. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.2.10. FEES. 

The City and County is hereby authorized to 
charge Participating Parties application, commit- 
ment, financing and other fees, in order to re- 
cover all administrative and other costs and 
expenses incurred in the exercise of the powers 
and duties' conferred by this Article. The Respon- 
sible Department shall transmit a letter agree- 
ment or contract to a Participating Party which 
will obligate such party to pay such fees and 
expenses as the City and County may charge or 
incur hereunder. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.2.11. INSURANCE. 

The City and County is hereby authorized to 
obtain, or aid in obtaining, from any department 
or agency of the United States or of the State of 
California or any private company, any insur- 
ance or guarantee as to, or of, or for the payment 
or repayment of, interest or principal, or both, 
rents, fees or other charges, or any part thereof, 
on any loan, lease or sale obligation or any 



instrument evidencing or securing the same, 
made or entered into as authorized by this Ar- 
ticle; and is authorized to accept pajnnent in 
such manner and form as provided therein in the 
event of default by a Participating Party, and to 
assign any such insurance or guarantee as secu- 
rity for Bonds. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.2.12. RENTS AND CHARGES. 

The City and County is hereby authorized to 
fix rents, payments, fees, charges and interest 
rates for a financing authorized by this Article 
and to agree to revise from time to time such 
rents, payments, fees, charges and interest rates 
to reflect changes in interest rates on Bonds, 
losses due to defaults or changes in other admin- 
istrative expenses. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.2.13. SECURITY FOR LOANS. 

The City and County is hereby authorized to 
hold deeds of trust or mortgages or security 
interests in personal property as security for 
loans and other obligations authorized by this 
Article and to pledge or assign the same as 
security for repayment of Bonds. Such deeds of 
trust, mortgages or security interests, or any 
other interest of the City and County in any 
Facility, may be assigned to, and held on behalf 
of, the City and County by any bank or trust 
company appointed to act as trustee by the City 
and County in any resolution or indenture pro- 
viding for the issuance of Bonds. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.14. PROFESSIONAL 
SERVICES. 

The City and County is hereby authorized to 
contract for such engineering, architectural, fi- 
nancing, accounting, leasing, legal or other pro- 
fessional services as may be necessary in the 
judgment of the City and County to accomplish 
the purposes of this Article. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.15. PUBLIC WORKS 
REQUIREMENTS INAPPLICABLE. 

Except as specifically provided in this Article, 
the acquisition, construction, installation, recon- 



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Municipal Finance Law - Economic Development Bond Law 



Sec. 43.2.19. 



struction, re^habilitation or improvement of a 
Facility financed under this Article shall not be 
subject to any requirements relating to build- 
ings, works or improvements owned or operated 
by the City and County, and any requirement of 
public competitive bidding or other procedural 
restriction imposed on the award of contracts for 
acquisition or construction of a City and County 
building, work or improvement or to the lease, 
sublease, sale or other disposition of City and 
County property shall not be applicable to any 
action taken under this Article. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.16. ADDITIONAL POWERS. 

In addition to all other powers specifically 
granted by this Article, the City and County is 
hereby authorized to contract for and do all 
things necessary or convenient to carry out the 
purposes of this Article, provided, however, that 
the City and County shall not have the power to 
operate a Facility financed under this Article as 
a business, except temporarily in the case of a 
default by a Participating Party. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

TITLE 3 - BONDS 

SEC. 43.2.17. ISSUANCE OF BONDS. 

The City and County is authorized to issue 
Bonds in an unlimited aggregate principal amount, 
from time to time, in such series and amounts as 
are determined by the Board of Supervisors by 
resolution to be necessary or appropriate to pro- 
vide for the Facility to be financed and its asso- 
ciated Costs. Bonds shall be negotiable instru- 
ments for all purposes, subject only to the 
provisions of such Bonds for registration. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.18. BONDS NOT DEBT OF 
CITY. 

All of the Bonds authorized under this Article 
shall be limited obligations of the City and County 
payable from all or any specified part of the 
revenues and the moneys and assets authorized 
in this Article to be pledged or assigned to secure 
payment of Bonds. Such revenues, moneys or 



assets shall be the sole source of repayment of 
such issues of Bonds. Bonds issued as authorized 
by this Article shall not be deemed to constitute 
a debt or liability of the City and County or a 
pledge of the faith and credit of the City and 
County but shall be payable solely from specified 
revenues, moneys and assets. The issuance of 
Bonds shall not directly, indirectly, or contin- 
gently obligate the City and County to levy or 
pledge any form of taxation or to make any 
appropriation for their payment. 

All Bonds shall contain on the face thereof a 
statement to the following effect: Neither the 
faith and credit nor the taxing power of the City 
and County of San Francisco is pledged to the 
pajinent of the principal of or premium, if any, or 
interest on this bond. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.2.19. BOND TERMS. 

Bonds shall be issued as serial bonds, term 
bonds, installment bonds or pass-through certifi- 
cates or any combination thereof The Respon- 
sible Department shall determine the terms and 
timing of the issuance of particular Bonds in 
accordance with the resolution of the Board of 
Supervisors approving the particular Facility to 
be financed thereby. Bonds shall bear such date 
or dates, mature at such time or times not to 
exceed 40 years, bear interest at such fixed or 
variable rate or rates approved by the Partici- 
pating Party whose Facility is being financed but 
not to exceed the maximum rate permitted by 
law, be payable at such time or times, be in such 
denominations, be in such form, either coupon or 
registered, carry such registration privileges, be 
executed in such manner, be payable in lawful 
money of the United States of America at such 
place or places, be subject to such terms of 
redemption and have such other terms and con- 
ditions as such resolution, or any indenture to be 
entered into by the City and County pursuant to 
such resolution, shall provide. Bonds shall be 
sold at either public or private sale and for such 
prices as the City and County shall determine. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 



Sec. 43.2.20. 



San Francisco - Administrative Code 



4000 



SEC. 43.2.20. BOND PROVISIONS. 

Any resolution relating to the issuance of any 
Bonds, or any indenture to be entered into by the 
City and County pursuant to such resolution, 
may contain provisions respecting any of the 
following terms and conditions, which shall be a 
part of the contract with the holders of such 
Bonds: 

(a) The terms, conditions and form of such 
Bonds and the interest and principal to be paid 
thereon; 

(b) Limitations on the uses and purposes to 
which the proceeds of sale of such Bonds may be 
applied, and the pledge or assignment of such 
proceeds to secure the payment of such Bonds; 

(c) Limitations on the issuance of additional 
parity Bonds, the terms upon which additional 
parity Bonds may be issued and secured, and the 
refunding of outstanding Bonds; 

(d) The setting aside of reserves, sinking 
funds and other funds and the regulation and 
disposition thereof; 

(e) The pledge or assignment of all or any 
part of the Revenues and of any other moneys or 
assets legally available therefor (including loans, 
deeds of trust, mortgages, leases, subleases, sales 
agreements and other contracts and security 
interests) and the use and disposition of such 
Revenues, moneys and assets, subject to such 
agreements with the holders of Bonds as may 
then be outstanding; 

(f) Limitation on the use of Revenues for 
operating, administration or other expenses of 
the City and County; 

(g) Specification of the act or omissions to 
act which shall constitute a default in the duties 
of the City and County to holders of such Bonds, 
and providing the rights and remedies of such 
holders in the event of default, including any 
limitations on the right of action by individual 
bondholders; 

(h) The appointment of a corporate trustee 
to act on behalf of the City and County and the 
holders of its Bonds, the pledge or assignment of 
loans, deeds of trust, mortgages, leases, sub- 
leases, sale contracts and any other contracts to 
such trustee, and the rights of such trustee; 



(i) The procedure, if any, by which the terms 
of any contract with bondholders may be amended 
or abrogated the amount of such Bonds the 
holders of which must consent thereto, and the 
manner in which such consent may be given; and 

(j) Any other provisions which the Board of 
Supervisors or the Responsible Department may 
deem reasonable and proper for the purposes of 
this Article and the security of the bondholders. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.2.21. PLEDGE OF REVENUES, 
MONEY OR ASSETS; LIEN. 

Any pledge of Revenues or other moneys or 
assets as authorized by this Article shall be valid 
and binding from the time such pledge is made. 
Revenues, moneys and assets so pledged and 
thereafter received by the City and County shall 
immediately be subject to the lien of such pledge 
without any physical delivery thereof or further 
act, and the lien of any such pledge shall be valid 
and binding as against all parties having claims 
of any kind in tort, contract, or otherwise against 
the City and County, irrespective of whether 
such parties have notice thereof. Neither the 
resolution nor any indenture by which a pledge 
is created need be filed or recorded except in the 
records of the City and County. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.22. NO PERSONAL LL^ILITY. 

Neither the members of the Board of Super- 
visors, the officers or employees of the City and 
County or the Responsible Department, nor any 
person executing any Bonds shall be liable per- 
sonally on the Bonds or be subject to any per- 
sonal liability or accountability by reason of the 
issuance thereof (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.2.23. PURCHASE OF BONDS BY 
CITY. 

The City and County shall have the power 
out of any funds available to purchase its Bonds. 
The City and County may hold, pledge, cancel, or 



4001 



Municipal Finance Law - Economic Development Bond Law 



Sec. 43.2.30. 



resell such Bonds, in accordance with agree- 
ments with the bondholders. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.24. REFUNDING BONDS. 

The City and County is hereby authorized to 
issue Bonds for the purpose of refunding any 
Bonds then outstanding. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.2.25. BOND ANTICIPATION 
NOTES. 

In anticipation of the sale of Bonds autho- 
rized by this Article, the City and County is 
hereby authorized to issue bond anticipation 
notes, and to renew the same from time to time, 
in such series and amounts as are determined by 
the Board of Supervisors to be necessary or 
appropriate for the Costs of Facilities approved 
by the Board of Supervisors. Such notes shall be 
payable from Revenues or other moneys or as- 
sets authorized by this Article to be pledged to 
secure payment of Bonds, and which are not 
otherwise pledged, or from the proceeds of sale of 
the particular Bonds in anticipation of which 
they are issued. Such notes shall be issued in the 
same manner as Bonds. The Responsible Depart- 
ment shall determine the terms and timing of 
the issuance of particular bond anticipation notes 
in accord with the provisions of Section 43.2.17 of 
this Chapter and the resolution of the Board of 
Supervisors approving the particular Facility to 
be financed thereby. Such notes, any resolution 
relating to the issuance of such notes and any 
indenture to be entered into by the City and 
County pursuant to such resolution may contain 
any provisions, conditions or limitations permit- 
ted under Section 43.2.1 of this Chapter. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.2.26. VALIDITY OF BONDS. 

The validity of the authorization and issu- 
ance of any Bonds is not dependent on and shall 
not be affected in any way by any proceedings 
taken by the City and County for the approval of 
any financing or the entering into of any agree- 
ment, or by the failure to provide financing or 



enter into any agreement, for which Bonds are 
authorized to be issued under this Article. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 

TITLE 4 - SUPPLEMENTAL PROVISIONS 

SEC. 43.2.27. LIBERAL 
CONSTRUCTION. 

This Article, being necessary for the welfare 
of the City and County and its inhabitants, shall 
be liberally construed to effect its purposes. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.2.28. OMISSIONS NOT TO 
AFFECT VALIDITY OF BONDS. 

Any omission of <any officer of the City and 
County in proceedings under this Article or any 
other defect in the proceedings shall not invali- 
date such proceedings or the Bonds issued pur- 
suant to this Article. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.2.29. ARTICLE CONTROLLING. 

To the extent that the provisions of this 
Article are inconsistent with the provisions of 
any general statute or special act or parts thereof 
the provisions of this Article shall be deemed 
controlling. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.2.30. SEVERABILITY. 

If any provisions of this Article or the appli- 
cation thereof to any person or circumstance is 
held invalid, such invalidity shall not affect any 
other provision or application of this Article 
which can be given effect without the invalid 
provision or application, and to this end the 
provisions of this i^irticle are declared to be 
severable. The Board of Supervisors hereby de- 
clares that it would have adopted and passed 
this Article and each section, subsection, sen- 
tence, clause, phrase and word hereof, irrespec- 
tive of the fact that any one or more of the other 
sections, subsections, sentences, clauses, phrases 



Sec. 43.2.30. San Francisco - Administrative Code 4002 

or words hereof be declared invalid or unconsti- 
tutional. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 



[The next page is 4011] 



ARTICLE III: AFFORDABLE HOUSING AND HOME OWNERSHIP BOND PROGRAM 



Sec. 43.3.1. Purpose. 

Sec. 43.3.2. Issuance of Bonds. 

Sec. 43.3.3. Housing Account. 

Sec. 43.3.4. Proposed Use of Bond Proceeds. 

Sec. 43.3.5. Mayor's Office of Housing. 

Sec. 43.3.6. Regulations. 

Sec. 43.3.7. Reports to the Board of 
Supervisors. 

SEC. 43.3.1. PURPOSE. 

The purpose of this Article III is to describe 
the affordable housing and home ownership bond 
program ("program") pursuant to which the City 
and County of San Francisco ("City") may loan or 
grant general obligation bond proceeds for the 
development of affordable housing for low- 
income households and for down payment assis- 
tance to low and moderate income first-time 
home buyers, each as further described in this 
Article III. (Added by Ord. 12-00, File No. 992117, 
App. 2/U/2000) 

SEC. 43.3.2. ISSUANCE OF BONDS. 

The City is authorized to issue $100,000,000 
of general obligation bonds to finance (i) the 
development of housing aff'ordable to low-income 
households in the City and County of San Fran- 
cisco, and (ii) down payment assistance to low 
and moderate income first-time home buyers; 
together with all other costs necessary or conve- 
nient for the foregoing purposes. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.3.3. HOUSING ACCOUNT. 

Bond proceeds shall be deposited into a sepa- 
rate account to be established by the Controller. 
Repajrments of loans made from this account 
shall be applied first to finance development of 
affordable rental housing and downpayment as- 
sistance for low and moderate income first-time 
homebuyers, in accordance with this Article III, 
and then may be used for any other lawful 



purpose under this program, subject to the bud- 
get and fiscal provisions of the City's Charter. 
Expenditures shall be subject to the budget and 
fiscal provisions of the City's Charter. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.3.4. PROPOSED USE OF BOND 
PROCEEDS. 

Following payment of costs of issuance, 85 
percent of the bond proceeds will be used for the 
development of affordable rental housing through 
the development account described in the regu- 
lations, and 15 percent of the bond proceeds will 
be used for downpayment assistance for low and 
moderate income first-time homebuyers through 
the downpajrment assistance loan account de- 
scribed in the program regulations; including all 
legally permissible administrative costs related 
to the program. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.3.5. MAYOR'S OFFICE OF 
HOUSING. 

The Mayor's Office of Housing or its succes- 
sor., or another agency or department as deter- 
mined by the Mayor, will be responsible for the 
administration of the program, subject to any 
legislation and rules and regulations described 
in this Article III. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.3.6. REGULATIONS. 

The Mayor's Office of Housing will prepare 
regulations for the program, which shall be sub- 
ject to approval of the Board of Supen^isors by 
resolution. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.3.7. REPORTS TO THE BOARD 
OF SUPERVISORS. 

The Mayor's Office of Housing will provide an 
annual report to the Board of Supervisors on the 
status of the program. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 



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4011 



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ARTICLE IV; PUBLIC UTILITIES COMMISSION ENTERPRISE REVENUE BOND 

ELECTION PROCEDURE 



Sec. 43.4.1. Utility Revenue Bonds; 

Submission to Voters. 
Sec. 43.4.2. Statement of Purpose; 

Incidental Expenses; Discretion. 

Sec. 43.4.3. Regular or Special Meeting. 
Sec. 43.4.4. Content of Resolution. 
Sec. 43.4.5. Regular or Special Election; 

Other Propositions. 
Sec. 43.4.6. Payable Only from Revenues; 

Not to be Secured by Taxing 

Power. 
Sec. 43.4.7. Publication and Distribution, 
Sec. 43.4.8. Majority Vote of Electorate 

Required. 
Sec. 43.4.9. Issuance and Sale of Authorized 

Bonds. 

SEC. 43.4.1. UTILITY REVENUE BONDS; 
SUBMISSION TO VOTERS. 

Whenever the Charter requires that a Public 
Utilities Commission revenue bond issue be sub- 
mitted to the voters, this Board by resolution 
adopted and signed by the Mayor shall submit 
the proposed revenue bond issue to the voters 
and shall set the date for the election. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.4.2. STATEMENT OF PURPOSE; 
INCIDENTAL EXPENSES; DISCRETION. 

The resolution authorizing submission of the 
proposed revenue bond issue may include any 
purpose authorized by the Revenue Bond Law of 
1941, as it read, including amendments, on June 
5, 1984, and may include any or all expenses 
incidental to such purpose or connected there- 
with and may include any combination of two or 
more such purposes. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.4.3. REGULAR OR SPECIAL 
MEETING. 

The resolution calling a revenue bond elec- 
tion may be adopted by a majority vote of all 



members at a regular or special meeting and at 
the same meeting £it which it is introduced. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.4.4. CONTENT OF 
RESOLUTION. 

The resolution shall: 

(a) State the purpose for which the bonds 
are proposed to be issued. 

(b) State the maximum principal amount of 
the bonds. 

(c) Fix the election date. 

(d) Fix the manner of holding the election. 

(e) Fix the manner of voting on the issuance 
of the bonds. 

(f) State that in all other particulars the 
election shall be held and the votes canvassed 
pursuant to law governing general municipal 
elections, the Charter, or as otherwise specified 
in such resolution. (Added by Ord. 12-00, File 
No,, 992117, App. 2/1:L/2000) 

SEC. 43.4.5. REGULAR OR SPECIAL 
ELECTION; OTHER PROPOSITIONS. 

The resolution may provide for a special 
election to consider the revenue bond proposition 
or propositions or it may provide for including 
the revenue bond proposition or propositions in 
any city-wide election. (Added by Ord. 12-00, File 
No, 992117, App. 2/11/2000) 

SEC. 43.4.6. PAYABLE ONLY FROM 
REVENUES; NOT TO BE SECURED BY 
TAXING POWER. 

The resolution shall state that the bonds are 
to be revenue bonds, payable exclusively from 
the revenue of a Public Utilities Commission 
Enterprise and the resolution shall also state 
that the bonds are not to be secured by the taxing 



4023 



Sec. 43.4.6. San Francisco - Administrative Code 4024 

power of the City and County of San Francisco. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.4.7. PUBLICATION AND 
DISTRIBUTION. 

The ballot proposition authorizing a sale of 
revenue bonds shall be printed in the voters' 
pamphlet and mailed to each registered voter 
pursuant to Charter Section 9.110. No other 
publication, mailing or distribution shall be re- 
quired. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.4.8. MAJORITY VOTE OF 
ELECTORATE REQUIRED. 

The votes of a majority of all the voters voting 
on the proposition to issue revenue bonds are 
required to authorize the issuance of the bonds. 
(Added by Ord. 12-00, File No. 992117, App. 
2/11/2000) 

SEC. 43.4.9. ISSUANCE AND SALE OF 
AUTHORIZED BONDS. 

If the issuance of the bonds is authorized at 
the election, the Public Utilities Commission 
shall provide for their issuance and sale. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 



[The next page is 4033] 



ARTICLE V: PUBLIC UTILITIES COMMISSION SHORT-TERM INDEBTEDNESS 



Sec. 43.5.1. Definitions. 

Sec. 43.5.2. Authorization of Short-Term 

Indebtedness. 
Sec. 43.5.3. Credit or Liquidity Support. 

Sec. 43.5.4. Maximum Short-Term 
Indebtedness. 

Sec. 43.5.5. Refunding Short-Term 

Indebtedness. 
Sec. 43.5.6. Construction. 

SEC. 43.5.1. DEFINITIONS. 

For purposes of this Article, the following 
terms shall have the meanings given below: 

(a) The term "Board" shall mean the Board 
of Supervisors of the City. 

(b) The term "Charter" shall mean the Char- 
ter of this City. 

(c) The term "City" shall mean the City and 
County of San Francisco. 

(d) The term "Commission" shall mean the 
Public Utilities Commission of the City. 

(e) The term "Director" shall mean Director 
of the City's Office of Public Finance, or her/his 
or any successor to that Office. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000; Ord. 
270-06, File No. 061297, App. 10/31/2006) 

SEC. 43.5.2. AUTHORIZATION OF 
SHORT-TERM INDEBTEDNESS. 

Following voter approval or Board approval, 
as the case may be, of the issuance of revenue 
bonds by the Commission pursuant to Section 
9.107 of the Charter or following Board approval 
of any revenue bonds or other obligations pursu- 
ant to Article VIIIB of the Charter, Commission 
may incur short-term indebtedness in the form 
of commercial paper, temporary notes or other 
forms of indebtedness subject to the limitations 
set forth below. In the case of revenue bond 
authority obtained by the Commission pursuant 



to Section 9.107 if the Charter, such short-term 
indebtedness would be incurred in anticipation 
of the issuance of such revenue bonds. 

The issuance of such short-term indebted- 
ness shall be subject to prior authorization by 
the Board. 

Except as provided in Section 43.5.5, use of 
the proceeds of any such short-term indebted- 
ness shall be limited to the purposes for which 
the applicable revenue bonds or other indebted- 
ness were approved by the voters or by the 
Board, as the case may be. Short-term indebted- 
ness incurred pursuant to this i^irticle shall not 
result in interest costs or a maturity date exceed- 
ing the limits, if any, fixed by the voters or the 
Board, as the case may be, with respect to the 
applicable revenue bond or indebtedness approv- 
al(s). 

Such short-term indebtedness shall be pay- 
able solely from the proceeds of the applicable 
revenue bonds, or revenues of the Commission 
pledged, or to be pledged, to the payment of such 
revenue bonds or other Board-authorized indebt- 
edness. In the case of revenue bonds authorized 
under Section 9.107 of the Charter, if any of the 
principal of such short-term indebtedness is paid 
from revenues of the Commission (other than 
revenues derived froin grants) rather than from 
the proceeds of revenue bonds, the principal 
amount of revenue bonds the Commission is 
thereafter authorized to issue shall be reduced 
by the principal amount of short-term indebted- 
ness paid from revenues (other than revenues 
derived from grants). 

Any pledge of revenues by the Coramission 
for the payment of short-term indebtedness may, 
in the sole discretion of the Director upon recom- 
mendation of the Commission, be subordinate to 
any pledge of the Commission for its revenue 
bonds. 

All indebtedness incurred pursuant to this 
Article shall not constitute or evidence a debt of 



4033 



Supp. No. 2, October 2006 



Sec. 43.5.2. 



San Francisco - Administrative Code 



4034 



the City, nor a legal or equitable pledge, charge, 
lien or encumbrance upon any property of the 
City, or upon any income, receipt, revenue of the 
City, except the revenues or funds, if any, pledged 
by the Commission. 

All short-term indebtedness incurred pursu- 
ant to this Article must additionally comply with 
each of the following provisions: 

(a) Shall be evidenced by notes, warrants, 
commercial paper or other evidences of indebt- 
edness maturing not later than five years from 
their issuance date; and 

(b) Any draw on such short-term indebted- 
ness (other than a draw to refund other short- 
term indebtedness) shall be subject to approval 
by the Director. 

(c) The proceeds of such short-term indebt- 
edness may only be used to fund projects that 
have been approved by the Board of Supervisors, 
either as part of the Public Utilities Commission's 
annual budget or as the subject of a separate 
approval. 

Such short-term indebtedness may be sold at 
the discretion of the Director, upon recommen- 
dation of the Commission, by public or private 
sale. All other terms and conditions for such 
short-term indebtedness shall be determined by 
the Director, upon recommendation of the Com- 
mission. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000; Ord. 270-06, File No. 061297, 
App. 10/31/2006) 

SEC. 43.5.3. CREDIT OR LIQUIDITY 
SUPPORT. 

The Director, upon recommendation of the 
Commission, may arrange for credit or liquidity 
support for short-term indebtedness issued pur- 
suant to this Article or may arrange for credit or 
liquidity support to provide an additional source 
of repayment for such short-term indebtedness. 

Notwithstanding anything to the contrary in 
this Article, any monies paid by a financial 
institution under any agreement for credit or 
liquidity support (a "credit facility") shall: 

(a) Be repaid over a period not exceeding 
the maximum maturity, if any, fixed by the 
voters or the Board, as the case may be, in 
connection with the applicable approval of rev- 
enue bonds or other indebtedness; 



(b) Bear interest at a rate that does not 
cause the aggregate average interest cost to 
exceed the maximum approved interest cost on 
such short-term indebtedness over the entire 
period such short-term indebtedness is outstand- 
ing; and 

(c) Have such other terms and conditions as 
the Director, upon the recommendation of the 
Commission, shall fix. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000; Ord. 270-06, File No. 
061297, App. 10/31/2006) 

SEC. 43.5.4. MAXIMUM SHORT-TERM 
INDEBTEDNESS. 

The maximum principal amount of all short- 
term indebtedness outstanding and incurred un- 
der this Article, including any amounts outstand- 
ing under any credit facility, together with the 
outstanding principal amount of related revenue 
bonds, shall not at any time exceed the maxi- 
mum principal amount of the applicable revenue 
bonds or other indebtedness approved by the 
voters or the Board, as the case may be. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000; 
Ord. 270-06, File No. 061297, App. 10/31/2006) 

SEC. 43.5.5. REFUNDING SHORT-TERM 
INDEBTEDNESS. 

The Commission, with the prior approval of 
the Director, may issue commercial paper, refund- 
ing notes, warrants, or other evidences of short- 
term indebtedness, in anticipation of the issu- 
ance of revenue bonds, for the purpose of pajdng 
and redeeming, at or prior to maturity, outstand- 
ing short-term indebtedness issued in accor- 
dance with this Article. Notwithstanding the 
preceding sentence, any short-term indebted- 
ness issued to refund outstanding short-term 
indebtedness may not: 

(a) Exceed the interest cost limitation set 
forth in Section 43.5.2; and 

(b) Exceed the limitation on the maximum 
principal amount of short-term indebtedness set 
forth in Section 43.5.4; and 

(c) Mature more than five years from the 
original date of issuance of the original short- 
term indebtedness it is refunding. 



Supp. No. 2, October 2006 



4035 Municipal Finance Law - Public Utilities Commission Sec. 43.5.6. 

Short-Term Indebtedness 

Short-term indebtedness issued to refund 
outstanding short-term indebtedness may be re- 
funded by the Commission in accordance with 
this Section 43.5.5. (Added by Ord. 12-00, File 
No. 992117, App. 2/11/2000) 

SEC. 43.5.6. CONSTRUCTION. 

The powers conferred by the provisions of 
this Article are in addition to and supplemental 
to the powers conferred by the Charter or any 
other ordinance or law. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 



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[INTENTIONALLY LEFT BLANK] 



Supp. No. 2, October 2006 



ARTICLE VI: SAN FRANCISCO REFUNDING REVENUE BOND ACT 



Sec, 43.6.1. Declaration of Policy. 

Sec. 43.6.2. Name. 

Sec. 43.6.3. Procedure. 

Sec. 43.6.4. Amendments. 

Sec. 43.6.5. Additional Procedures. 

Sec. 43.6.6. Net Debt Savings Calculation. 

Sec. 43.6.7. Construction. 

SEC. 43.6.1. DECLARATION OF POLICY. 

It is hereby declared to be the policy of the 
City to permit the refunding of outstanding 
revenue bonds whenever such refunding is ex- 
pected to result in net debt service savings 
calculated as provided in this Article. This Ar- 
ticle is enacted pursuant to the powers reserved 
to the City under Sections 3, 5 and 7 of Article XI 
of the Constitution of the State of California and 
the Charter. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.6.2. NAME. 

This Article shall be known as the San Fran- 
cisco Refunding Revenue Bond Act. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.6.3. PROCEDURE. 

Whenever the public interest and necessity 
so require, the legislative body, as hereinafter 
defined, may, acting under this Article, authorize 
the issuance of refunding bonds in order to 
refund outstanding revenue bonds. Refunding 
bonds issued to refund water revenue bonds 
issued under Section 9.109 of the Charter shall 
be issued under Section 9.109 of the Charter, as 
amended by the procedures herein. Refunding 
bonds shall be issued by the procedures provided 
for in the Revenue Bond Law of 1941 (Article 6 of 
Part 1 of Division 2 of Title 5 of the California 
Government Code, commencing with Section 
54300) as it read, including amendments, on 
June 5, 1984, except as amended herein and, 
further, except that the provisions of said Rev- 



enue Bond Law of 1941 set forth in Sections 
54380 through 54388, inclusive, and Sections 
54354.5, 54422, 54424, 54515 and 54522, any 
references to said Sections, and any provisions of 
said Revenue Bond Law of 1941 that are incon- 
sistent with or conflict with the Charter shall not 
apply to the issuance and sale of such refunding 
bonds. Reference is hereby made to three copies 
of said Revenue Bond Law of 1941 (as in effect on 
June 5, 1984), filed for convenience in the office 
of the Clerk of the Board of Supervisors on July 
7, 1987 and all of the provisions of said Revenue 
Bond Law of 1941 (as in effect on June 5, 1984 
except as in this Article otherwise expressly 
provided) are hereby incorporated in this Article 
by reference and made a part hereof. The legis- 
lative body may authorize the issuance of the 
refunding bonds by means of an indenture, reso- 
lution, ordinance, order, agreement or other in- 
strument in writing and, if the legislative body 
establishes the minimum savings to be gener- 
ated by the issuance of such refunding bonds, 
may delegate to appropriate officials or officers 
of the City or of the legislative body the authority 
to determine the final terms, amounts, maturi- 
ties, interest rates and other provisions of said 
refunding bonds. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.6.4. AMENDMENTS. 

Certain provisions of said Revenue Bond Law 
of 1941 (as in effect on June 5, 1984), as incor- 
porated herein, are revised, as follows: 

(a) Section 54402(b) of said Revenue Bond 
Law of 1941 (as in effect on June 5, 984) is 
hereby revised to read as follows: 

(b) The interest of the bonds, either 
fixed or variable, at such rate or rates 
and payable at the times and in the 
manner specified. 



4043 



Sec. 43.6.4. 



San Francisco - Administrative Code 



4044 



(b) Section 54403 of said Revenue Bond 
Law of 1941 (as in effect on June 5, 1984) is 
revised to read as follows: 

Any premium payable on the bonds 
shall be in the amount or amounts 
specified by the legislative body. 

(c) Section 54418 of said Revenue Bond Law 
of 1941 (as in effect on June 5, 1984) is revised to 
read as follows: 

The legislative body may sell the bonds 
at a price above or below par in such 
manner at public or private sale as it 
determines by resolution is appropri- 
ate. 

(d) The following three sections are added 
to Article 1 of the Act, said sections to read as 
follows: 

§ 54317. Legislative body, definition 

"Legislative body" means the com- 
mission, board or other governing body 
that adopted the resolution authoriz- 
ing the issuance of the bonds to be 
refunded, and any successor to such 
commission, board or other governing 
body. 
§ 54318. Resolution, definition 

"Resolution" means, unless the con- 
text otherwise requires, the instru- 
ment providing the terms and condi- 
tions for the issuance of the revenue 
bonds, and may be an indenture, reso- 
lution, ordinance, order, agreement or 
other instrument in writing. 

§ 54319. Fiscal agent, definition 

"Fiscal agent" means any fiscal 
agent, trustee, paying agent, deposi- 
tory or other fiduciary provided for in 
the resolution authorizing the issu- 
ance of the refunding bonds. 

(Added by Ord. 12-00, File No. 992117, App. 

2/11/2000) 

SEC. 43.6.5. ADDITIONAL 
PROCEDURES. 

Prior to the issuance of refunding bonds by 
the commission, board or other governing body. 



there shall be presented to the Board of Super- 
visors and filed with the Clerk of the Board of 
Supervisors a report of said commission, board 
or other governing body setting forth the mini- 
mum amount of savings to be generated in terms 
of scheduled principal and interest pajrments by 
the issuance of the refunding bonds. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.6.6. NET DEBT SAVINGS 
CALCULATION. 

(a) Acting under the provisions of the Char- 
ter or under any other provision of general State 
law, the Board of Supervisors may provide for 
the issuance of refunding bonds for the purpose 
of refunding any outstanding revenue bonds of 
the City or its commissions. No voter approval 
shall be required for any such refunding bonds 
which provide net debt service savings to the 
City on a present value basis calculated as pro- 
vided in such provisions of general State law or 
by other ordinance of the Board of Supervisors or 
as hereinafter provided in this Section 43.6.6. 
Subject to the foregoing limitation, the principal 
amount of the refunding bonds (in aggregate or 
with respect to any maturity) may be more than, 
less than or the same as the principal amount of 
the bonds to be refunded. 

(b) Net debt service savings shall be calcu- 
lated by comparing the present value of the 
aggregate debt service on the refunding bonds to 
that of the refunded bonds as of the dated date of 
the refunding bonds using an assumed rate of 
interest equal to the jdeld on the refunding 
bonds. To the extent required, the present value 
of any funds contributed to the refunding by the 
City shall be deducted from the savings calcula- 
tion. Notwithstanding any provision of general 
State law to the contrary, this Section 43.6.6 
shall provide an alternative means of calculating 
debt service savings to any procedure contained 
in general State law. The City is authorized to 
rely on any other State law procedure related to 
calculating debt service savings. 

(c) This Section 43.6.6 has been adopted 
pursuant to Section 9.109 of the Charter. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 



4045 Municipal Finance Law - San Francisco Refunding Revenue Bond Act Sec. 43.6.7. 



SEC. 43.6.7. CONSTRUCTION. 

The powers conferred by the provisions of 
this Article are in addition to and supplemental 
to the powers conferred by the Charter or any 
other ordinance or by law. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 



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ARTICLE VII: SAN FRANCISCO BOND FACILITATION ACT 



Sec. 43.7.1. Declaration of Policy. 

Sec. 43.7.2. Name. 

Sec. 43.7.3. Definitions. 

Sec. 43.7.4. Interest Payments. 

Sec. 43.7.5. Issuance by Authority of 

Governing Bodies. 
Sec. 43.7.6. Authority for Actions in 

Addition to Special Provisions. 
Sec. 43.7.7. Construction. 

SEC. 43.7.1. DECLARATION OF POLICY. 

It is hereby declared to be the policy of the 
City to permit interest payable on indebtedness 
of the City or of any of its Commissions, Depart- 
ments or Agencies to be payable at such time or 
times as may facilitate the sale of the indebted- 
ness pursuant to the procedure set forth in this 
Article as well as by any other method permitted 
by law. This Article is enacted pursuant to the 
powers resei'ved to the City under Sections 3, 5 
and 7 of Article XI of the Constitution of the 
State of California and Section 1.101 of the 
Charter. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.7.2. NAME. 

This Article shall be known as the San Fran- 
cisco Bond Facilitation Act. (Added by Ord. 12- 
00, File No. 992117, App. 2/11/2000) 

SEC. 43.7.3. DEFINITIONS. 

As used in this Article: 

(a) "Bonds" means any bonds, notes, certifi- 
cates of indebtedness or other evidences of in- 
debtedness issued after April 1, 1991, by a public 
body which is authorized to issue bonds, notes, 
certificates of indebtedness or other evidence of 
indebtedness. 

(b) "Public body" means the City or any 
Commission,, Department or Agency thereof. 



(c) "Governing body" means the governing 
board, commission, board of supervisors, board 
of directors or similar multimember body which 
exercises authority over a public body. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.7.4. INTEREST PAYMENTS. 

Notwithstanding any other provision of law 
specifying that interest on Bonds is payable 
semiannually, interest on Bonds is payable at 
the times established in the resolution, inden- 
ture, agreement or other instrument providing 
for the issuance of the Bonds. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.7.5. ISSUANCE BY AUTHORITY 
OF GOVERNING BODIES. 

Notwithstanding any other provision of law 
specifying that Bonds shall be issued pursuant 
to a resolution of a governing body of a public 
body, a governing body of a public body may 
authorize the issuance of Bonds pursuant to a 
resolution, indenture, agreement or other instru- 
ment providing for the issuance of Bonds. (Added 
by Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.7.6. AUTHORITY FOR ACTIONS 
IN ADDITION TO SPECIAL PROVISIONS. 

The general authority provided in this Article 
is intended to be in addition to, and not limited 
by, specific provisions authorizing the issuance of 
bonds, notes or other evidences of indebtedness 
and is separate and complete authority for the 
actions authorized in this Article. (Added by Ord. 
12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.7.7. CONSTRUCTION. 

The powers conferred by the provisions of 
this Article are in addition to and supplemental 
to the powers conferred by the Charter or any 
other ordinance or by law. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 



[The next page is 4061] 



4051 



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ARTICLE VIII: REFUNDING BOND SAVINGS TEST ACT 



Sec. 43.8.1. Declaration of Policy. 

Sec. 43.8.2. Name. 

Sec. 43.8.3. Definitions. 

Sec. 43.8.4. Alternative Savings Test for 

Refunding Bonds. 
Sec. 43.8.5. Construction. 

SEC. 43.8.1. DECLARATION OF POLICY. 

It is hereby declared to be the policy of the 
City to permit the refunding of outstanding 
general obligation bonds, revenue bonds and 
lease obligations of the City whenever such re- 
funding shall result in net debt service savings to 
the City pursuant to the procedure set forth in 
this Article as well as by any other method 
permitted by law or other ordinance of the Board, 
This Article is enacted pursuant to the powers 
reserved to the City under Sections 3, 5 and 7 of 
Article XI of the Constitution of the State of 
California and Sections 9.106, 9.108 and 9.109 of 
the Charter. (Added by Ord. 12-00, File No. 
992117, App. 2/11/2000) 

SEC. 43.8.2. NAME. 

This Article shall be known as the Refunding 
Bond Savings Test Act. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 

SEC. 43.8.3. DEFINITIONS. 

For purposes of this Article, the following 
terms shall have the meanings given below: 

(a) The term "Board" shall mean the Board 
of Supervisors of the City. 

(b) The term "Charter" shall mean the Char- 
ter of this City. 

(c) The term "City" shall mean the City and 
County of San Francisco. 

(d) The term "lease obligations" shall in- 
clude the City's obligation under any lease en- 
tered into with any nonprofit corporation, author- 
ity or other entity which issues, or causes to be 



issued, lease revenue bonds or certificates of 
participation secured by, or evidencing interests 
in, the City's obligation under such lease. 

(e) The term "refunded bond" shall mean 
any outstanding general obligation bond, rev- 
enue bond or lease obligation to be refunded by 
the City 

(f) The term "refunding bond" shall mean 
anj*^ bond issued or lease obligation entered into 
for the purpose of refunding in whole or in part, 
an}^ general obligation bond or any lease obliga- 
tion. 

(g) The term "yield" shall mean the yield on 
the refunding bonds as calculated pursuant to 
the provisions of the Internal Revenue Code of 
1986, as amended from time to time. (Added by 
Ord. 12-00, File No. 992117, App. 2/11/2000) 

SEC. 43.8.4. ALTERNATIVE SAVINGS 
TEST FOR REFUNDING BONDS. 

(a) Acting under the provisions of the Char- 
ter or under any other provision of general State 
law, the Board may provide for the issuance of 
refunding bonds for the purpose of refunding any 
outstanding general obligation bonds, revenue 
bonds or lease obligations of the City. No voter 
approval shall be required for any such refund- 
ing bonds which provide net debt service savings 
to the City on a present value basis calculated as 
provided in such provisions of general State law 
or by other ordinance of the Board or as herein- 
after provided in Section 43.8.4(b). Subject to the 
foregoing limitation, the principal amount of the 
refunding bonds (in aggregate or with respect to 
any maturity) may be more than, less than or the 
same as the principal amount of the bonds or 
lease obligations to be refunded. 

(b) Net debt service savings shall be calcu- 
lated by comparing the present value of the 
aggregate debt service on the refunding bonds to 
that of the refunded bonds as of the date of the 
refunding bonds using an assumed rate of inter- 
est equal to the yield on the refunding bonds. To 



4061 



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Sec. 43.8.4. 



San Francisco - Administrative Code 



4062 



the extent required, any funds contributed to the 
refunding by the City shall be deducted from the 
savings calculation. Notwithstanding any provi- 
sion of general State law to the contrary, this 
Section 43.8.4(b) shall provide an alternative 
means of calculating debt service savings to any 
procedure contained in general State law. The 
City is authorized to rely on any other State law 
procedure related to calculating debt service 
savings. 

(c) The Board may authorize the issuance 
and provide the final terms, amounts, maturi- 
ties, interest rates and other provisions of the 
refunding bonds (including a reference to the 
procedure under which debt service savings is to 
be calculated) by means of an indenture, resolu- 
tion, ordinance, order, agreement or other instru- 
ment in writing. If the Board establishes the 
minimum savings to be generated by the issu- 
ance of such refunding bonds, the Board may 
delegate to appropriate officials or officers of the 
City or of the Board the authority to determine 
the final terms, amounts, maturities, interest 
rates and other provisions of said refunding 
bonds. (Added by Ord. 12-00, File No. 992117, 
App. 2/11/2000) 

SEC. 43.8.5. CONSTRUCTION. 

The powers conferred by the provisions of 
this Article are in addition to and supplemental 
to the powers conferred by the Charter or any 
other ordinance or by law. (Added by Ord. 12-00, 
File No. 992117, App. 2/11/2000) 



Supp. No. 5, February 2007 



ARTICLE IX: HOUSING BOND APPROVAL POLICY 



Sec. 43.9.1. Findings. 

Sec. 43.9.2. Definitions. 

Sec. 43.9.3. Declaration of Policy. 

Sec. 43.9.4. Bonds Issued by an Authority to 

Finance a Residential Project. 
Sec. 43.9.5. Policy Regarding Other 

Authority Bonds. 
Sec. 43.9.6. Apphcability 

SEC. 43.9.1. FINDINGS. 

The City and County of San Francisco (the 
"City") promotes the financing and construction 
of new affordable and mixed income housing by, 
among other things, issuing multifamily housing 
revenue bonds or 501(c)(3) bonds for private 
projects. The proceeds of such bonds are loaned 
by the City to a project sponsor to help it finance 
affordable and mixed income housing construc- 
tion. The City is not liable for repayment of the 
bonds; the primary reason for the City's partici- 
pation is that interest on qualifying City housing 
bonds is exempt from federal income taxation, 
reducing the project's cost of borrowing and 
thereby helping to make the affordable housing 
projects financially feasible. In return for the 
City's issuance of the bonds, the sponsor agrees 
to, among other things, (i) repay the loan by 
making payments of debt service and other 
amounts payable in connection with the bonds, 
(ii) enter a regulatory agreement with the City 
that sets forth restrictions on the housing units 
to ensure their affordability, and (iii) comply 
with certain other City contracting requirements 
that apply to contractors receiving City funds for 
project construction (the "City's Contracting Re- 
quirements"). The City's Contracting Require- 
ments include, without limitation, provisions re- 
quiring compliance with the City's contracting 
requirements and policies regarding nondiscrimi- 
nation, equal benefits, minimum compensation, 
health care accountability, prevailing wage, local 
disadvantaged business enterprise subcontract- 



ing and jobs programs (such the City's First 
Source Hiring or City Build programs), as appli- 
cable. The San Francisco Redevelopment Agency 
(the "Agency") issues these housing revenue bonds 
as well and in doing so requires compliance with 
applicable Agency contracting requirements and 
policies, which are similar to the City's Contract- 
ing Requirements. 

The City also supports affordable and mixed 
income housing construction through its mem- 
bership in joint exercise of powers authorities 
such as the California Statewide Communities 
Development Authority and the Association of 
Bay Area Governments (all such joint powers 
authorities of which the City is a member are 
referred to in this ordinance individually as the 
"Authority"). Each Authority issues housing rev- 
enue bonds similar to the bonds described in the 
preceding paragraph. Under the terms of the 
City's membership in these Authorities, along 
with certain provisions of the federal Internal 
Revenue Code if such bonds are to be issued on a 
tax-exempt basis, the City's Board of Supervi- 
sors (the "Board of Supervisors") must adopt a 
resolution approving the bond financing prior to 
its issuance (a "TEFIM Resolution"). Again, the 
City is not liable for repayment of the bonds. 

While the Authority and City transaction 
structures are similar on their face, in an Au- 
thority transaction the City is typically not a 
party to the transaction documents, and as such 
the project sponsors are not required to comply 
with the City's Contracting Requirements. (Added 
by Ord. 36-07, File No. 060897, App. 3/9/2007) 

SEC. 43.9.2. DEFINITIONS. 

(a) "Agency" shall have the meaning as- 
signed to such term in Section 43.9.1. 

(b) "Authority" shall have the meaning as- 
signed to such term in Section 43.9.1. 

(c) "Board of Supervisors" shall have the 
meaning assigned to such term in Section 43.9.1. 



4063 



Supp. No. 5, February 2007 



Sec. 43.9.2. 



San Francisco - Administrative Code 



4064 



(d) "City" shall have the meaning assigned 
to such term in Section 43.9.1. 

(e) "City's Contracting Requirements" shall 
have the meaning assigned to such term in 
Section 43.9.1. 

(f) "HUD" shall mean the United States 
Department of Housing and Urban Develop- 
ment. 

(g) "Other Authority Bonds" shall mean any 
tax exempt bonds proposed to be issued by an 
Authority on behalf of a project sponsor to fi- 
nance or refinance any capital project other than 
a Residential Project, including but not limited 
to the financing of assisted living or educational 
facilities and refunding bonds relating to any 
type of project. 

(h) "Residential Project" shall mean a resi- 
dential development (including residential por- 
tions of a mixed-use project) involving new con- 
struction, an addition, a conversion, or a 
rehabilitation, the financing of which is proposed 
to be assisted by any of the following: a HUD 
mortgage insurance program; a contract for 
project-based Section 8 rental assistance; HUD 
operating funds under HUD's Section 202 or 
Section 811 programs; or participation in the 
Low Income Housing Tax Credit program. 

(i) "TEFRA Resolution" shall have the mean- 
ing assigned to such term in Section 43.9.1. 
(Added by Ord. 36-07, File No. 060897, App. 
3/9/2007) 

SEC. 43.9.3. DECLARATION OF POLICY. 

This Board of Supervisors hereby declares 
that it is the policy of the City to require spon- 
sors of private residential projects financed with 
multifamily housing revenue bonds or 501(c)(3) 
bonds within the City to comply with the City's 
Contracting Requirements. If such bonds are to 
be issued by an Authority, it shall be the policy of 
the City to require a project sponsor to satisfy 
the requirements of Section 43.9.4 as a condition 
to the City's approval of a TEFRA resolution. For 
bond-financed residential projects located within 
a redevelopment area, the Agency's policies and 
contracting requirements applicable to that re- 
development area may replace some or all of the 



City's Contracting Requirements for purposes of 
this section. (Added by Ord. 36-07, File No. 
060897, App. 3/9/2007) 

SEC. 43.9.4. BONDS ISSUED BY AN 
AUTHORITY TO FINANCE A 
RESIDENTIAL PROJECT. 

Any TEFRA Resolution to be considered by 
the Board of Supervisors in connection with 
bonds proposed to be issued by an Authority to 
finance all or a portion of a residential project 
must include or be accompanied by the following: 

(a) An agreement by the project sponsor to 
be bound by provisions consistent with the City's 
Contracting Requirements, provided that in rec- 
ognition of the exemptions from the Minimum 
Compensation Ordinance and the Health Care 
Accountability Ordinance for affordable housing 
loan transactions to which the City is a party as 
set forth in Section 12P.2 and 12Q.2.4 of the 
Administrative Code, respectively, the City may 
waive the applicability of its minimum compen- 
sation or health care accountability require- 
ments for nonprofit sponsors of affordable hous- 
ing projects upon recommendation by the Director 
of the Mayor's Office of Housing or his or her 
designee and subject to approval of the Board of 
Supervisors by resolution. The provisions setting 
forth the project sponsor's agreements shall in- 
clude references to compliance monitoring and 
enforcement regimes consistent with City law 
applicable to each such City Contracting Require- 
ment. Such agreement shall clearly indicate the 
City agency charged with monitoring compliance 
with each requirement provision so imposed, and 
notice of such agreement shall be provided to 
each such agency by the Mayor's Office of Hous- 
ing. 

(b) Except as approved in writing by the 
Mayor's Office of Housing, and subject to appli- 
cable HUD and state regulations, an agreement 
by the project sponsor to protect tenants of the 
Residential Project as of the date of issuance of 
the bonds from eviction due to the financing 
based solely on any such tenant's failure to meet 
a financing-related income standard at the time 
of bond issuance or at any time during the term 
of the affordability restrictions. 



Supp. No. 5, February 2007 



4065 



Municipal Finance Law - Housing Bond Approval Policy 



Sec. 43.9.5. 



(c) Except as approved in writing by the 
Mayor's Office of Housing, and subject to appli- 
cable HUD and state regulations, an agreement 
by the project sponsor to limit annual rent in- 
creases for tenants of the Residential Project as 
of the date of issuance of the bonds to the 
percentage change in area median income for 
such year as such amount is determined by 
HUD. In the event that HUD does not make such 
a determination such amounts shall be deter- 
mined by the Mayor's Office of Housing. 

(d) A written description of the expected 
ownership and management structure of the 
Residential Project after bond issuance. Such 
description shall include a description of the 
experience of the project sponsor in managing 
similar affordable residential projects. Such de- 
scription shall also include a summary of the 
affordable residential project experience of any 
nonprofit corporations or other entities the project 
sponsor anticipates including in a joint venture 
with respect to the Residential Project. The Board 
of Supervisors hereby expresses a policy prefer- 
ence to support (i) Residential Projects with 
proposed management teams that include non- 
profit partners based within the City and (ii) 
Residential Projects proposed to be managed by 
entities that demonstrate substantial experience 
with affordable housing projects. 

(e) Proof of the delivery of written notice via 
mail to all current tenants and posting at the 
project location regarding the application for 
bond financing and the TEFRA hearing. Such 
proof may be provided in the form of a letter 
signed by the project sponsor and must be accom- 
panied by the notice in the form in which it was 
delivered. 

(f) A recommendation as to passage of the 
TEFRA Resolution from the Director of the 
Mayor's Office of Housing or his or her designee. 

(g) An agreement by the project sponsor to 
reimburse the City and the Agency, as appli- 
cable, for staff time, including fees and costs of 
the City Attorney's Office, relating to the TEFRA 
Resolution and the satisfaction of the policies set 
forth in this Article. The City may waive the 
applicability of this clause (g) for nonprofit spon- 



sors of affordable housing projects upon recom- 
mendation by the Director of the Mayor's Office 
of Housing or his or her designee and subject to 
approval of the Board of Supervisors by resolu- 
tion. For projects located within a redevelopment 
area, the Agency would be responsible for mak- 
ing the recommendation described in the preced- 
ing sentence. (Added by Ord. 36-07, File No. 
060897, App. 3/9/2007) 

SEC. 43.9.5. POLICY REGARDING 
OTHER AUTHORITY BONDS. 

(a) Prior to the consideration by the Board 
of Supervisors of a TEFRA Resolution relating to 
any issuance of Other Authority Bonds, the Au- 
thority and the project sponsor shall submit the 
following information to the City's Office of Pub- 
lic Finance: 

(1) A written description of the financing 
structure proposed in the current transaction, 
including anticipated sources and uses. 

(2) A written description of the expected 
ownership and management structure of the 
project after bond issuance. Such description 
shall include a description of the experience of 
the project sponsor in managing similar projects. 
Such description shall also include a summary of 
the project-related experience of any nonprofit 
corporations or other entities the project sponsor 
anticipates including in a joint venture with 
respect to the bond-financed project. The Board 
of Supervisors hereby expresses a policy prefer- 
ence to support (i) projects with proposed man- 
agement teams that include nonprofit partners 
based within the City and (ii) projects proposed 
to be managed by entities that demonstrate 
substantial experience with t3^e of project being 
financed. 

(3) Such other information as City officials 
deem necessary to evaluate the proposed bond 
financing. 

(b) The Office of Public Finance shall re- 
view the information described under paragraph 
(a) and provide copies to City departments with 
expertise relating to the projects in question, to 



Supp. No. 5, February 2007 



Sec. 43.9.5. San Francisco - Administrative Code 4066 

the Mayor's Office of Housing and, if the pro- 
posed project is located within a redevelopment 
area, the Agency. 

(c) After soliciting any and all comments 
from the agencies described in paragraph (b), the 
Director of Public Finance shall provide its rec- 
ommendation as to passage before consideration 
of the TEFRA Resolution by the Board of Super- 
visors. (Added by Ord. 36-07, File No. 060897, 
App. 3/9/2007) 

SEC. 43.9.6. APPLICABILITY. 

This Chapter shall not be interpreted to 
apply to any residential project for which the 
sponsor has submitted a request for the intro- 
duction of a TEFRA resolution on or before June 
1, 2006. (Added by Ord. 36-07, File No. 060897, 
App. 3/9/2007) 



[The next page is 4071] Supp. No. 5, February 2007 



CHAPTER 44: ADULT DAY HEALTH CARE PLANNING COUNCIL 



Sec. 44.1. Establishment of the Council; 

Appointment. 
Sec. 44.2. Public Hearing. 

Sec. 44.3. Composition of Council. 

Sec. 44.4. Terms of Council Members. 

Sec. 44.5. President and Vice President of 

the Council. 

Sec. 44.6. Compensation. 

Sec. 44.7. Power and Duties. 

Sec. 44.8. Assistance in the Development 

of the County Plan. 

SEC. 44.1. ESTABLISHMENT OF THE 
COUNCIL; APPOINTMENT. 

Pursuant to Section 1572.5 of the California 
Health and Safety Code, there is hereby estab- 
lished an advisory council of 17 members, known 
as the Adult Day Health Care Planning Council, 
who shall be appointed by the Board of Supervi- 
sors. (Added by Ord. 329-81, App. 6/19/81; 
amended by Ord. 434-89, App. 12/6/89) 

SEC. 44.2. PUBLIC HEARING. 

In accordance with Section 1572.7 of the 
California Health and Safety Code, there shall 
be a public hearing prior to the establishment of 
the Council. (Added by Ord. 329-81, App. 6/19/ 
81) 

SEC. 44.3. COMPOSITION OF COUNCIL. 

The composition of the Council shall be as 
follows: 

(a) Nine persons over 55 years of age who 
have a demonstrated interest in the special health 
and social needs of the elderly and who are 
representative of organizations dedicated prima- 
rily to the needs of older persons, including those 
of low income and racial and ethnic minorities; 

(b) One representative of the area agency 
on aging designated pursuant to Public Law 
94-135; or, if none, a county agency responsible 
for services to senior citizens; 



(c) One representative of a county agency 
responsible for administration of health pro- 
grams for senior citizens; 

(d) A representative of the County Depart- 
ment of Human Services, or the equivalent agency; 

(e) One representative of the San PVancisco 
Medical Society; 

(f) One representative of a publicly funded 
senior citizen transportation pro:gram; 

(g) One representative of a health facility or 
organization of health facilities providing acute 
or long-term care to the elderly; 

(h) A member-at-large who has demon- 
strated interest in alternatives to institutional 
long-term care; and 

(i) A functionally impaired adult member 
with a demonstrated interest in community- 
based, long-term care needs of the functionally 
impaired who is 18 or over, and under 55 years of 
age. 

In making appointments to the Council, the 
Board shall take into consideration any recom- 
mendations made by the Mayor with respect to 
any of the above categories. (Added by Ord. 
329-81, App. 6/19/81; amended by Ord. 434-89, 
App. 12/6/89; Ord. 150-00, File No. 000801, App. 
6/30/2000) 

SEC. 44.4. TERMS OF COUI^CIL 
MEMBERS. 

The term of each member shall be for three 
years. Where a member, prior to the expiration of 
his or her term, ceases to retain the status which 
qualified him or her for appointment to the 
Council, the membership shall terminate and 
there shall be a vacancy on the Council. (Added 
by Ord. 329-81, App. 6/19/81; amended by Ord. 
434-89, App. 12/6/89) 

SEC. 44.5. PRESIDENT AND VICE 
PRESIDENT OF THE COUNCIL. 

Commencing with the date upon which the 
first members take office, the Council shall elect 



4071 



Sec. 44.5. San Francisco - Administrative Code 4072 

a president and vice president from among its 
members. (Added by Ord. 329-81, App. 6/19/81) 

SEC. 44.6. COMPENSATION. 

Members of the Council shall serve without 
compensation. (Added by Ord. 329-81, App. 6/19/ 
81) 

SEC. 44.7. POWER AND DUTIES. 

Pursuant to Section 1572.9 of the California 
Health and Safety Code and guidelines adopted 
thereunder, the Council shall have the following 
powers and duties: 

(a) To prepare a City and County plan for 
the development of a community-based system of 
quality adult day health care; 

(b) To hold public hearings on the City and 
County plan prior to the plan's adoption; and 

(c) To review all applications for adult day 
health care licenses within the City and County 
and make recommendations to the California 
Department of Health Services. (Added by Ord. 
329-81, App. 6/19/81) 

SEC. 44.8. ASSISTANCE IN THE 
DEVELOPMENT OF THE COUNTY PLAN. 

The Department of Public Health and the 
Commission on the Aging shall assist the Coun- 
cil in the development of the City and County 
plan for adult day health care. Staff support 
shall be provided by the Department of Public 
Health. (Added by Ord. 329-81, App. 6/19/81) 



[The next page is 4079] 



CHAPTER 45: JURY FEES 



Sec. 45.1. Title. 

Sec. 45.2. Grand Juror Fees. 

Sec. 45.3. Trial Juror Fees. 

SEC. 45.1. TITLE. 

This chapter shall be known as the Jury Fees 
Ordinance. (Amended by Ord. 514-84, App. 12/ 
21/84) 

SEC. 45.2. GRAND JUROR FEES. 

Grand Jurors shall receive for each day's 
attendance, upon a regularly called grand jury 
meeting, $11 per meeting and, in addition a 
Grand Juror shall be compensated for up to four 
committee meetings per month at $11 per meet- 
ing. 

For the purposes of this section, meetings to 
be compensated are defined as follows. A grand 
jury meeting shall mean a meeting of the full 
grand jury. A committee meeting shall mean a 
meeting of the grand jury which is less than the 
total number of members of the full grand jury 
and designated by the foreperson of the grand 
jury to conduct, on behalf of the grand jury, an 
investigation of the operations of City and County 
government, provided that the committee must 
be investigating a matter under its jurisdiction. 
(Amended by Ord. 514-84, App. 12/21/84) 

SEC. 45.3. TRIAL JUROR FEES. 

Trial jurors shall receive for each day's atten- 
dance in the Superior and Municipal Courts, in 
both civil and criminal cases, the fee of $10. In 
addition, trial jurors shall be reimbursed at the 
rate of $1.50 for every 10 miles, or fraction 
thereof, actually traveled from the residence of 
the juror in attending court as a juror, in going 
only (Added by Ord. 514-84, App. 12/21/84) 



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CHAPTER 47: [RESERVED] 



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CHAPTER 49: SECURITY DEPOSITS FOR RESIDENTIAL RENTAL PROPERTY 



Sec. 49.1. Security Deposit for Residential 

Rental Property Defined. 

Sec. 49.2. Payment of Interest on Security 

Deposits. 

Sec. 49.3. Remedies. 

Sec. 49.4. Waiver. 

Sec. 49.5. Severability. 

SEC. 49.1. SECURITY DEPOSIT FOR 
RESIDENTIAL RENTAL PROPERTY 
DEFINED. 

As provided in Section 1950.5 of the Califor- 
nia Civil Code, a security deposit is any pay- 
ment, fee, deposit or charge including, but not 
limited to, any of the following: (1) The compen- 
sation of a landlord for a tenant's default in the 
payment of rent; (2) the repair of damages to the 
premises caused by the tenant; (3) the cleaning 
of the premises upon termination of the tenancy 
(Added by Ord. No. 299-83, App. 6/3/83) 

SEC. 49.2. PAYMENT OF INTEREST ON 
SECURITY DEPOSITS. 

(a) A landlord who is subject to the provi- 
sions of Section 1950.5 of the California Civil 
Code shall pay simple interest on all security 
deposits held for at least one year for his/her 
tenants; provided, however, that this require- 
ment shall not apply where the rent is assisted 
or subsidized by any government unit, agency or 
authority. 

(b) Interest shall begin accruing on Septem- 
ber 1, 1983,, or on whatever date the security 
deposit is received by the landlord after Septem- 
ber 1, 1983, and shall accrue until the tenancy 
terminates. Beginning on September 1, 1984, or 
on any date thereafter upon which the security 
deposit has been held by the landlord for one 
year, and annually thereafter on the same month 
and day, a tenant shall be given the unpaid 
accrued interest in the form of ether a direct 



pa5nment or a credit against the tenant's rent. 
The landlord shall choose between these two 
methods of payment. 

(c) Upon termination of tenancy, a tenant 
whose security deposit has been held for one year 
or more shall be entitled to a direct pro-rata 
pajnnent of any unpaid accrued interest no later 
than two weeks after the tenant has vacated the 
premises; provided, however, that a landlord 
may retain any portion of the unpaid accrued 
interest, subject to the limitations and require- 
ments set forth in Section 1950.5(e) of the Cali- 
fornia Civil Code, where the security deposit 
alone is insufficient to remedy tenant default in 
the payment of rent,, to repair damages to the 
premises caused by the tenant, exclusive of ordi- 
nary wear and tear, or to clean such premises, if 
necessary, upon termination of the tenancy. 

(d) Nothing in this Chapter shall preclude a 
landlord from exercising his or her discretion in 
investing security deposits. 

(e) Notwithstanding the provisions of (a) 
through (c) above, where a landlord seeks reim- 
bursement for the annual Residential Rent Sta- 
bilization and Arbitration fee as provided in 
Section 37A.6 of this Code, the landlord may 
deduct said fee from the next interest payment 
owed to the tenant pursuant to this Chapter. 

(f) The interest rate for interest payments 
required by this Chapter 49 shall be determined 
by the Residential Rent Stabilization and Arbi- 
tration Board (Rent Board), to be effective on 
March 1 of each year. 

(1) For March 1, 2003 and prior years, the 
Rent Board shall calculate the rate as of the 
immediately preceding December 31st according 
to the historical Federal Reserve Discount Win- 
dow Borrowing Rate, using an average of the 
twelve most recent monthly rates (rounded to 
the nearest tenth) as posted by the Federal 
Reserve on the Federal Reserve Statistical Re- 
lease internet site. 



4119 



Sec. 49.2. San Francisco - Administrative Code 4120 

(2) For March 1, 2004 and future years, the 
Rent Board shall calculate the rate as of the 
immediately preceding December 31st according 
to the Federal Reserve 6-Month Certificate of 
Deposit rate, using an average of the twelve 
most recent monthly rates (rounded to the near- 
est tenth) as posted by the Federal Reserve on 
the Federal Reserve Statistical Release internet 
site. 

(g) The amount of interest due and payable 
by the landlord shall be the amount of the 
security deposit held by the landlord on the date 
the interest pajnnent is due multiplied by either: 

(1) The interest rate in effect on the date 
the annual payment is due, if the payment is due 
under Section 49.2(b); or 

(2) The interest rate in effect on the date 
the tenant vacates the unit, if the tenant is 
entitled to a pro-rata interest payment under 
Section 49.2(c). (Added by Ord. No. 299-83, App. 
6/3/83; amended by Ord. 278-89, App. 8/2/89; 
Ord. 291-90, App. 8/1/90; Ord. 107-02, File No. 
020296, App. 7/5/2002; Ord. 90-03, File No. 030221, 
App. 6/16/2003; Ord. 82-04, File No. 040101, 
App. 5/20/2004) 

SEC. 49.3. REMEDIES. 

The rights, obligations and remedies of ten- 
ants and landlords under this Chapter shall be 
as provided in Subsections (f), (g), (h) and (j) of 
Section 1950.5 of the California Civil Code. (Added 
by Ord. No. 299-83, App. 6/3/83) 

SEC. 49.4. WAIVER. 

Any waiver by a tenant of rights under this 
Chapter shall be void as contrary to public policy. 
(Added by Ord. No. 299-83, App. 6/3/83) 

SEC. 49.5. SEVERABILITY. 

If any provision or clause of this Chapter or 
the application thereof to any person or circum- 
stance is held to be unconstitutional or to be 
otherwise invalid by any court of competent 
jurisdiction, such invalidity shall not affect other 
Chapter provisions, and clauses of this Chapter 
are declared to be severable. (Added by Ord. No. 
299-83, App. 6/3/83) 



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CHAPTER 49A: RESIDENTIAL TENANT COMMUNICATIONS 



Sec. 49A.1. 
Sec. 49A.2. 
Sec. 49A.3. 

SEC. 49A.1. 

The Board of Supervisors finds that, particu- 
larly with the large proportion of rental units in 
the City and County of San Francisco, good 
communications among tenants and between 
tenants and landlords about these tenancies is 
important to the ongoing vitality of the commu- 
nity. This Ordinance is intended to encourage 
and respect those communicative channels. (Added 
by Ord. 9-04, File No. 031701, App. 1/16/2004) 



SEC. 49A.3. 

(a) The provisions of this Chapter 49A are 
not applicable to purely commercial literature 
that is no directly related to the building tenan- 
cies, 

(b) The provisions of this Chapter 49A shall 
not be read to limit or replace residential tenant 
or landlord rights or remedies found in other 
ordinances, or in statutes or Constitutions. (Added 
by Ord. 9-04, File No. 031701, App. 1/16/2004) 



SEC. 49A.2. 

A landlord may not prohibit a tenant who 
resides in a building from using common areas in 
that building to distribute literature to other 
building tenants, including literature distrib- 
uted on behalf of a tenants' association or other 
tenants' organization, where the literature re- 
lates to issues of common interest or concern to 
the buildings' tenancies. 

(a) Distribution may include hanging or oth- 
erwise placing literature on the door of tenant 
units, or where that is not possible as a practical 
matter then the literature may be placed on the 
floor in front of tenant units. Such literature 
placed on or in front of the door of a tenant unit 
must plainly include the name and telephone 
number and address of a distributor that the 
affected tenant may contact to opt out of future 
doorway distributions of such literature. 

(b) The landlord may establish other rea- 
sonable requirements as to the time, place, man- 
ner, and volume, of such literature distribution, 
including a limitation of distribution under this 
Chapter to no more than once per calendar 
Quarter. (Added by Ord. 9-04, File No. 031701, 
App. 1/16/2004) 



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CHAPTER 49B: RESIDENTIAL RENTAL UNITS: LOCK REPLACEMENTS BY LANDLORD 

WHEN TENANTS VACATE 



Sec. 49B.1. Findings. 

Sec. 49B.2. Re-Key or Replace Locks. 

Sec. 49B.3. Other Remedies. 

SEC. 49B.1, FINDINGS. 

The Board of Supervisors finds that residen- 
tial tenant safety and security in the City and 
County of San Francisco is an ongoing concern of 
landlords, tenants, and their neighbors. Residen- 
tial rental units comprise a significant propor- 
tion of housing in the City. The Board further 
finds that re-keying or replacing entrance door 
locks on any vacated unit would contribute to 
safety and security (Added by Ord. 200-07, File 
No. 070679, App. 8/10/2007) 

SEC. 49B.2. RE-KEY OR REPLACE 
LOCKS. 

When a residential rental unit is perma- 
nently vacated by all tenants, the landlord shall 
re-key or replace all door locks that are exclusive 
to that unit, including all entrance door locks on 
the vacated unit and any locks on separate 
entrance doors to any storage and/or garage 
facility exclusively used in connection with the 
use or occupancy of the vacating tenants. All of 
the following conditions apply: 

(a) If two or more locks on any one door are 
subject to the re-key and replacement provisions 
of Section 49B.2 and open by different keys, the 
landlord must re-key or replace only one of the 
locks on the door. 

(b) If the same key opens two or more locks 
subject to the re-key and replacement provisions 
of Section 49B.2, the landlord must re-key or 
replace all locks opened by that key. 

(c) The re-key and lock replacement require- 
ments of this Chapter do not apply to any door 
locks that are provided for use by two or more 
units. (Added by Ord. 200-07, File No. 070679, 
App. 8/10/2007) 



SEC. 49B.3. OTHER REMEDIES. 

The provisions of this Chapter 49B shall not 
be read to limit or replace residential tenant or 
landlord rights or remedies found in other ordi- 
nances, or in statutes or Constitutions. (Added 
by Ord. 200-07, File No. 070679, App. 8/10/2007) 



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CHAPTER 50: NONPROFIT PERFORMING ARTS LOAN PROGILiVM 

Article Page 

I. GENERAL PROVISIONS 4153 

IL LOAN ADMINISTRATION 4163 

m. LOAN REQUIREMENTS 4173 

IV. MISCELLANEOUS PROVISIONS 4187 



4151 



San Francisco - Administrative Code 



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ARTICLE I: GENERAL PROVISIONS 



Sec. 50.1. Purpose and Findings. 

Sec. 50.2. Definitions. 

SEC. 50.1. PURPOSE AND FINDINGS. 

The Board of Supervisors hereby finds and 
declares that nonprofit performing arts organi- 
zations are an important cultural element of the 
quality of life in San Francisco. The Board also 
finds and declares that numerous arts organiza- 
tions either operate out of facilities which do not 
meet the standards imposed by City and State 
fire, building, earthquake and other safety codes 
or are unable to acquire adequate operating 
space. Many of these arts organizations are 
financially unable to maintain their facilities or 
make the capital improvements needed to bring 
their facilities into compliance with these codes. 
This Chapter is therefore enacted in order to 
make low-cost loans available to qualified arts 
organizations for facilities maintenance, renova- 
tion and capital improvements so that they may 
carry on their work in facilities which are in full 
compliance with all applicable code require- 
ments and with all other requirements which 
enable the facilities to be used for performing 
arts. In addition, this Chapter is enacted in order 
that low-cost loans may be made to these arts 
organizations for the acquisition or renovation of 
adequate operating space, to the extent that 
funds are available for this purpose. 

The Board of Supervisors expressly finds and 
declares that the appropriation and expenditure 
of public funds for the purposes set forth above 
will serve a public purpose and will benefit the 
residents of San Francisco as a whole. Nonprofit 
arts organizations which work in substandard 
facilities are currently faced with the choice of 
either continuing to work in environments that 
are unsafe for their members and audiences 
alike, or of interrupting their work while they 
seek new and adequate facilities. The loans to be 
provided under this Chapter will assure that 
these arts organizations carry on their efforts in 



facilities which enhance the health, safety and 
welfare of the artists and of those who come to 
view their work. (Added by Ord. 69-84, App. 
2/15/84; amended by Ord. 160-91, App. 4/25/91) 

SEC. 50.2. DEFINITIONS. 

Unless otherwise indicated by the context, 
the following definitions shall govern the con- 
struction of this Chapter: 

(a) "Arts organization" shall mean a non- 
profit performing arts organization which is ex- 
empt from taxation under Section 501(c)(3) of 
the Internal Revenue Code of 1986, as amended, 
and which is otherwise eligible for loans under 
this Chapter. 

(b) "Director" shall mean the Director of the 
Grants for the Arts Program. 

(c) "Fund" shall mean the Nonprofit Per- 
forming Arts Loan Fund, established pursuant 
to Administrative Code Section 10.117-41. 

(d) "Incipient code violation" shall mean a 
physical condition of property which may reason- 
ably be expected to deteriorate into a code viola- 
tion within two years. (Added by Ord. 69-84, 
App. 2/15/84; amended by Ord. 160-91, App. 
4/25/91; Ord. 114-06, File No. 051519, App. 6/1/ 
2006) 



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4153 



Supp. No. 1, September 2006 



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Supp. No. 1, September 2006 



ARTICLE II: LOAN ADMINISTRATION 



Sec. 50.10. Duties of City and County 

Agencies. 
Sec. 50.11. Rules and Regulations. 
Sec. 50.12. Reports to the Board of 

Supervisors. 

SEC. 50.10. DUTIES OF CITY AND 
COUNTY AGENCIES. 

The Director shall be responsible for admin- 
istration of all aspects of the Nonprofit Perform- 
ing Arts Loan Program. The Director and each 
City and County agency assigned responsibili- 
ties under this Chapter shall have all such 
authority as may be reasonably necessary to 
carry out those responsibilities, including the 
authority to enter into or amend any agreements 
that the Director deems necessary to help admin- 
ister the Nonprofit Performing Arts Loan Pro- 
gram, including but not limited to, agreements 
with loan servicing agencies. While retaining the 
overall responsibility for the administration of 
the program, the Director may utilize the ser- 
vices of the Department of Public Works and the 
Fire Department in connection with the code 
enforcement aspects of the program, and the 
services of the Mayor's Office, Department of 
Administrative Services, Department of Build- 
ing Inspection and Real Estate Department in 
connection with the loan financing aspects of the 
program. The Director may also request the 
assistance of any other City and County agency 
in meeting his or her responsibilities under this 
program. With respect to funds previously sent 
through interdepartmental work order from 
Grants for the Arts to the Non Profit Performing 
Arts Loan Program to supplement the original 
$500,000 in the Fund, the Director shall have 
the discretion to convert such funds for use in 
making capital grants. (Added by Ord. 69-84, 
App. 2/15/84; Ord. 114-06, File No. 051519, App. 
6/1/2006) 

SEC. 50.11. RULES AND REGULATIONS. 

The Director shall promulgate such rules and 
regulations as he or she may deem appropriate 



to carry out the provisions of this Chapter, in- 
cluding rules and regulations for general pay- 
ment schedule adjustments, individualized pay- 
ment schedule adjustments and criteria for loan 
forgiveness where the Director, in consultation 
with the Controller's Office, deems such provi- 
sions are necessary in order to recoup outstand- 
ing loans or to ensure the ongoing effectiveness 
of the program by assisting the economic viabil- 
ity of the borrowers and helping to alleviate 
debt-related or other financial hardships. Said 
rules and regulations shall be developed in con- 
sultation with pertinent City and County agen- 
cies and any other appropriate organizations 
which the Director in his or her discretion may 
choose to consult. The Board of Supervisors shall 
by resolution approve all such rules and regula- 
tions prior to their effective date. A copy of all 
such rules and regulations shall be available for 
review by the public during regular business 
hours in the office of the Director, the office of the 
Clerk of the Board of Supervisors, the Fire 
Prevention Bureau of the Fire Department, the 
Department of Public Works and in every other 
office which is assigned responsibilities for car- 
rying out this program. Within the first six (6) 
months following the effective date of this Ordi- 
nance, the Director shall submit, for review and 
consideration at a public hearing, a report to the 
Board of Supervisors containing the financial 
status on each of the loans in the NPALP port- 
folio, setting forth (a) any specific criteria for 
loan adjustments or forgiveness, (b) a plan of 
action for collection of all remaining delinquent 
and future loans, and (c) a proposed plan regard- 
ing whether NPALP loan recipients may use any 
portion of their annual City grant funds for 
NPALP loan repayment purposes. (Added by 
Ord. 69-84, App. 2/15/84; Ord. 114-06, File No. 
051519, App. 6/1/2006) 

SEC. 50.12. REPORTS TO THE BOARD 
OF SUPERVISORS. 

The Director shall submit a semi-annual re- 
port to the Board of Supervisors, within 90 days 



4163 



Supp. No. 1, September 2006 



Sec. 50.12. San Francisco - Administrative Code 4164 

following the completion of each six-month pe- 
riod, setting forth a description of all loans made 
under this Chapter and an accounting of the uses 
made of all monies appropriated to the fund for 
the period in question. The Director's report 
shall include the fees, interest rates and other 
charges levied for each loan. The semi-annual 
reports shall also include the following informa- 
tion: 

(a) For loans subsequent to the date of the 
last semi-annual report, the primary purpose of 
the loan, the principal amount, interest rate, and 
any fees which have been charged on the loan in 
excess of regularly scheduled interest payments; 
and 

(b) For loans outstanding as of the date of 
the last semi-annual report, the outstanding 
principal balance, the current status of principal 
and interest, repayments made, if any, any cur- 
rent or potential default under the loan docu- 
ments and any potential administrative action to 
be taken with respect thereto. (Added by Ord. 
69-84, App. 2/15/84; amended by Ord. 160-91, 
App. 4/25/91) 



[The next page is 4173] Supp. No. 1, September 2006 



ARTICLE III: LOAN REQUIREMENTS 



Sec. 50.20. 



Sec. 50.21. 
Sec. 50.22. 



Sec. 50.23. 

Sec. 50.24. 

Sec. 50.25. 

Sec. 50.26. 



Applicant's Plan for Facilities 

Maintenance and Capital 

Improvements. 

Eligibility for Loans. 

Maximum Loan Amount; 

Factors in Determining Terms 

and Conditions. 

Loan Fees and Interest Rates; 

Deferrals and Waivers. 

Security for Loans. 

Insurance. 

Transfer and Assignment of 

Loans. 



SEC. 50.20. APPLICANT'S PLAN FOR 
FACILITIES MAINTENANCE AND 
CAPITAL IMPROVEMENTS. 

Each loan applicant shall submit a proposed 
plan for facilities maintenance and capital im- 
provements or acquisition as part of the loan 
application process. The proposed plan shall in- 
clude provisions designed to correct all code 
violations and incipient code violations of appli- 
cable City and State fire, building, earthquake 
and other safety codes, and any other provisions 
which the Director in his or her discretion may 
require. In consultation with the Department of 
Public Works, the Fire Department and other 
relevant City and County agencies, the Director 
shall review the proposed plan to ensure that it 
meets all applicable code requirements for the 
subject property. (Added by Ord. 69-84, App. 
2/15/84) 

SEC. 50.21. ELIGIBILITY FOR LOANS. 

Each arts organization working in a facility 
in San Francisco which has been or is subject to 
being cited for code violations or incipient code 
violations or that intends to acquire or renovate 
a facility in San Francisco shall be eligible for a 
loan under this Chapter. Loans under this Chap- 
ter shall be available only to arts organizations 



with annual budgets of less than $2,500,000, and 
only for the repair and maintenance or acquisi- 
tion of facilities containing 50 to 600 seats. Each 
arts organization shsQl apply for a loan in com- 
pliance with all applicable rules and regulations 
as promulgated by the Director; shall demon- 
strate to the satisfaction of the Director the 
ability to repay such a loan, and shall meet all 
applicable requirements as set forth in this Chap- 
ter. 

Priority for loans shall be given to arts orga- 
nizations seeking funds to correct life safety code 
violations in the facility where they are pres- 
ently working or acquisitions necessitated by life 
safety code defects and to arts organizations that 
have demonstrated compliance with repayment 
obligations on prior loans from the City or other 
lending institutions. It is the intent of the Board 
of Supervisors that the maximum degree of cul- 
tural and ethnic diversity be achieved among 
loan recipients, to insure that minority, disabled, 
lesbian/gay and other arts organizations may 
share in the benefits of this program. In admin- 
istering this loan program, the Director shall 
give priority to this intent and shall insure that 
sufficient funds are available to achieve this 
purpose. (Added by Ord. 69-84, App. 2/15/84; 
amended by Ord. 160-91, App. 4/25/91; Ord. 
114-06, File No. 051519, App. 6/1/2006) 

SEC. 50.22. MAXIMUM LOAN AMOUNT; 
FACTORS IN DETERMINING TERMS 
AND CONDITIONS. 

The maximum amount of a loan under this 
Chapter shall be $200,000. The Director shall 
determine the terms and conditions of each loan, 
based upon the following factors: 

(a) Whether the arts organization owns the 
subject property or holds a longterm lease the 
life of which exceeds the anticipated repayment 
period; 

(b) The size, age, value and condition of the 
subject property; 



4173 



Supp. No. 1, September 2006 



Sec. 50.22. 



San Francisco - Administrative Code 



4174 



(c) The nature and extent of all Code and 
incipient Code violations; 

(d) The type of security to be given for the 
loan; 

(e) The verifiable financial soundness of the 
arts organization and its ability to complete the 
project for which the loan application is made; 

(f) The degree to which an arts organization 
can demonstrate community interest in and sup- 
port for its artistic programs; and 

(g) Any other factors that the Director shall, 
by rule and regulation, establish. (Added by Ord. 
69-84, App. 2/15/84; amended by Ord. 160-91, 
App. 4/25/91; Ord. 280-99, File No. 991737, App. 
10/29/99) 

SEC. 50.23. LOAN FEES AND INTEREST 
RATES; DEFERRALS AND WAIVERS. 

A one percent loan fee on the principal of the 
loan shall be levied for all loans made under this 
Chapter. An interest rate of three percent simple 
interest shall also be levied by the Director. 

In individual cases of documented hardship, 
the Director may either waive pa3mient of the 
loan fee or defer it until the termination of the 
loan. The Director shall promulgate rules and 
regulations which shall be applied in making 
determinations of such waivers and deferrals. 
(Added by Ord. 69-84, App. 2/15/84) 

SEC. 50.24. SECURITY FOR LOANS. 

The owner of the subject property shall agree 
in writing to all alterations to the property to be 
financed by the loan as a prerequisite to granting 
a loan to any arts organization which is a tenant 
in the subject property. A copy of the arts 
organization's lease shall also be filed with the 
Director. 

Every loan made under this Chapter shall be 
fully secured. The Director shall evaluate the 
types of security offered by each loan applicant 
and shall give preference to those types and 
amounts of security that in his or her opinion 
will provide the greatest protection for the City's 
funds. Further, the Director shall determine that 
the liquidation value of any security equals or 
exceeds the full value of the loan and the ex- 



pected costs of proceeding on such security and 
obtaining the proceeds of any collateral. Those 
types of security shall include, but are not lim- 
ited to: 

(a) A deed of trust on the subject property, 
naming the City and County as beneficiary; 

(b) The guarantee of the owner of the sub- 
ject property, in cases where the arts organiza- 
tion is the tenant of the property to be improved; 

(c) The independent, joint and several, col- 
lateral guarantee of the Board of Directors of an 
arts organization; 

(d) A chattel mortgage or financing state- 
ment on equipment or other personal property 
owned by the arts organization, (Added by Ord. 
69-84, App. 2/15/84; amended by Ord. 160-91, 
App. 4/25/91) 

SEC. 50.25. INSURANCE. 

All loans made under this Chapter shall 
provide that the loan applicant shall maintain, 
throughout the term of the loan, fire and light- 
ning insurance with an extended coverage en- 
dorsement and a vandalism and malicious mis- 
chief endorsement. Such insurance shall be in an 
amount equal to 100 percent of the replacement 
cost of the improvements or other work to be 
financed by the proceeds of the loan. If a loss 
occurs which results in the total destruction of 
the subject structure, the insurance policy shall 
provide payment to the City in the amount of the 
then outstanding loan balance. The Director 
shall promulgate regulations, in consultation 
with the Risk Manager, to determine the circum- 
stances in which any additional insurance re- 
quirements may be imposed. (Added by Ord. 
69-84, App. 2/15/84) 

SEC. 50.26. TRANSFER AND 
ASSIGNMENT OF LOANS. 

(a) The unpaid amount of any loan shall be 
due and payable upon the occurrence of any of 
the following events: 

(1) Sale or transfer of ownership of the 
property, if the arts organization is the owner of 
the subject property. 



Supp. No. 1, September 2006 



4175 Nonprofit Performing Arts Loan Program - Loan Requirements Sec. 50.26. 

(2) The vacation of the property by the arts 
organization, if the organization is the tenant of 
the subject property. 

(3) Cessation of activities by the borrower 
as a nonprofit performing arts organization, 
whether or not the property is transferred or 
vacated. 

(4) Cessation of use of the property as a 
performing arts faciUty 

(b) Assignment of the unpaid amount of 
such a loan to a purchaser or transferee may be 
permitted where the Director determines that 
the purchaser or transferee is an arts organiza- 
tion which quahfies for a loan under current loan 
eligibility standards. The Director shall promul- 
gate rules and regulations which shall be applied 
in making the determinations required under 
this subsection. (Added by Ord. 69-84, App. 2/15/ 
84; amended by Ord. 160-91, App. 4/25/91) 



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Supp. No. 1, September 2006 



ARTICLE IV: MISCELLANEOUS PROVISIONS 

Sec. 50.30. Severability. 

SEC. 50.30. SEVERABILITY. 

The provisions of this ordinance shall not 
apply to any person, association, corporation or 
to any property as to whom or which it is beyond 
the power of the City and County to legislate. If 
any sentence, clause, section or part of this 
ordinance is found to be unconstitutional, illegal 
or invalid, such unconstitutionality, illegality, or 
invalidity shall affect only such clause, sentence, 
section or part of this ordinance, or person or 
entity; and shall not affect or impair any of the 
remaining provisions, sentences, clauses, sec- 
tions or other parts of this ordinance, or its effect 
on other persons or entities. It is hereby declared 
to be the intention of the Board of Supervisors of 
the City and County that this ordinance would 
have been adopted had such unconstitutional, 
illegal or invalid sentence, clause, section or part 
of this ordinance not been included herein; or 
had such person or entity been expressly ex- 
empted from the application of this ordinance. To 
this end the provisions of this ordinance are 
severable. (Added by Ord. 69-84, App. 2/15/84) 



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CHAPTER 51: VOLUNTARY ARTS CONTRIBUTIONS PROGRAM 



Sec. 51.01. Purpose and Findings. 

Sec. 51.02. Duties of Tax Collector. 

Sec. 51.03. Duties of Mayor. 

Sec. 51.04. Expenditures from Fund. 

Sec. 51.05. Severability. 



SEC. 51.01. PURPOSE AND FINDINGS. 

The Board of Supervisors hereby finds and 
declares that it is in the public interest to facili- 
tate private contributions for the support of the 
arts in San Francisco. To the extent that mem- 
bers of the public can be encouraged to make 
donations to nonprofit arts organizations, the 
cultural quality of life in the City will be en- 
hanced and the need to support such arts activi- 
ties with public funds will be diminished. This 
Chapter is therefore enacted to facilitate the 
collection and distribution of donations from San 
Francisco residents and other interested mem- 
bers of the public for equipment acquisition, 
facilities maintenance and capital improve- 
ments. (Added by Ord. 79-84, App. 2/23/84) 



SEC. 51.02. DUTIES OF TAX 
COLLECTOR. 

(a) The Tax Collector shall develop proce- 
dures to solicit contributions from all taxpayers 
for nonprofit arts organizations in San Fran- 
cisco. Said procedures shall include, but not be 
limited to, the inclusion of an explanatory bro- 
chure or other material to be mailed in conjunc- 
tion with all property tax bills, stating that 
contributions for nonprofit arts organizations 
may be mailed to the Tax Collector in addition to 
payments for property taxes. 

(b) The Tax Collector shall record the re- 
ceipt of all contributions received and shall de- 
posit the same into the Voluntary Arts Contribu- 
tions Fund. (Added by Ord. 79-84, App. 2/23/84) 



SEC. 51.03. DUTIES OF MAYOR. 

(a) The Mayor, or his or her designee, shall 
be responsible for the administration of the Vol- 
untary Arts Contributions Fund, and shall have 
all such authority as may be reasonably neces- 
sary to carry out those responsibilities. 

(b) The Mayor shall promulgate such rules 
and regulations as he or she rriciy deem appro- 
priate to carry out the provisions of this Chapter. 
Such rules and regulations shall be developed in 
consultation with any appropriate agencies or 
organizations with which the M.ayor, or his or 
her designee, may choose to consult. Such rules 
and regulations shall be designed to ensure that 
nonprofit arts organizations which meet current 
eligibility requirements for the receipt of funds 
from the Publicity and Advertising Fund shall 
also be eligible for the receipt of funds under this 
Chapter. 

(c) The Mayor shall submit a semiannual 
report to the Board of Supervisors, setting forth 
an accounting of the amounts disbursed to each 
nonprofit arts organization and the uses for 
which said funds were made. (Added by Ord. 
79-84, App. 2/23/84; amended by Ord. 287-96, 
App. 7/12/96) 

SEC. 51.04. EXPENDITURES FROM 
FUND. 

It is the intent of the Board of Supervisors 
that monies deposited into the Voluntary Arts 
Contribution Fund shall be made available for 
equipment acquisition, facilities maintenance and 
capital improvements for the benefit of nonprofit 
arts organizations. 

In evaluating applications for funds under 
this Chapter, the Mayor shall give preference, 
where possible, to nonprofit arts organizations 
with annual budgets of less than $1,000,000. 

It is also the intent of the Board of Supervi- 
sors that the maximum degree of cultural and 
ethnic diversity be achieved among recipients of 



4197 



Sec. 51.04. San Francisco - Administrative Code 4198 

funds under this Chapter, to insure that minor- 
ity, disabled, lesbian/gay and other nonprofit 
arts organizations may share in the benefits of 
this Fund. In administering the Voluntary Arts 
Contribution Fund, the Mayor shall give priority 
to this intent and shall insure that sufficient 
funds are available to achieve this piirpose. (Added 
by Ord. 79-84, App. 2/23/84; amended by Ord. 
287-96, App. 7/12/96) 

SEC. 51.05. SEVERABILITY. 

If any provisions of this ordinance or the 
application thereof to any person or circum- 
stance is held invalid, the validity of the remain- 
der of the ordinance and the applicability of such 
provisions to other persons and circumstances 
shall not be affected thereby. (Added by Ord. 
79-84, App. 2/23/84) 



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CHAPTER 52: [RESERVED] 



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CHAPTER 54: SOUTHEAST COMMUNITY FACILITY COMMISSION 



Sec. 54.1. Findings. 

Sec. 54.2. Establishment of Commission; 

Appointment; Terms; Meetings; 

Compensation; Executive 

Director. 
Sec. 54.3. Powers and Duties of the 

Commission. 
Sec. 54.4. Surplus Funds. 

SEC. 54.1. FINDINGS. 

The Board of Supervisors finds and declares 
that it is necessary and essential to the well- 
being of the City to establish a Commission to 
review and provide guidance for the operations 
of the Southeast Community Facility. 

The Commission will foster the following 
public purposes and municipal affairs of the 
City: 

(a) The full and gainful employment of resi- 
dents of chronically economically depressed ar- 
eas of the City; 

(b) The progressive development of market- 
able job skills for untrained and undertrained 
City residents; 

(c) The creation and expansion of opportu- 
nities for residents to participate in day and 
evening education programs; 

(d) The creation and expansion of opportu- 
nities for providing day care services at a low and 
reasonable cost to parents; 

(e) The expansion of opportunities for spe- 
cial community services for senior citizens; 

(f) The overall improvement of the general 
economic prosperity, health, safety and welfare 
of residents of chronically economically de- 
pressed areas of the City. 

The Board of Supervisors further finds and 
declares that the Bayview-Hunters Point com- 
munity, as defined in Section 54.2(b) of this 
Chapter, is an historically disadvantaged and 
economically depressed part of the City and that 
guidance by and participation of persons living 



or working in that area are essential to the 
successful operations of the Southeast Commu- 
nity Facility and the attainment of the goals and 
pui-poses mentioned above. (Ord. 438-87, App. 
11/12/87) 

SEC. 54.2. ESTABLISHMENT OF 
COMMISSION; APPOINTMENT; TERMS; 
MEETINGS; COMPENSATION; 
EXECUTIVE DIRECTOR. 

(a) There is established a Commission to be 
known as the Southeast Community Facility 
Commission consisting of seven imembers. Com- 
mission members shall be appointed by and 
serve at the pleasure of the Mayor. Unless the 
Mayor determines that it is otherwise impracti- 
cable, persons appointed to serve as members of 
the Commission shall either reside or work in 
the Bayview-Hunters Point community, as de- 
fined in Section 54.2(b) of this Chapter. 

(b) For purposes of this Chapter, the Bay- 
view-Hunters Point community is defined as the 
area south of the southern curb line of Army 
Street, east of the eastern curb line of the James 
Lick Freeway (also known as U.S. Route 101), 
north of the city and county boundary line shared 
with San Mateo County, and west of San Fran- 
cisco Bay. 

(c) Members will be appointed for a term of 
office of four years, except that all of the vacan- 
cies occurring during a term will be filled by an 
appointment made by the Mayor for the unex- 
pired term. Each vacancy shall be filled within 
30 days of the occurrence of the vacancy. 

(d) A president shall be selected by majority 
vote of the members of the Commission. The 
president shall serve for a term of two years and 
shall not serve more than two consecutive terms. 

(e) The date, place and time of meeting 
shall be determined by rules adopted by the 
Commission; provided, however, that the Com- 
mission will hold a regular meeting not less than 
once each month. 



4223 



Sec. 54.2. 



San Francisco - Administrative Code 



4224 



(f) Subject to the budgetary and fiscal re- 
quirements of the Charter, each member shall be 
paid $50 per Commission meeting or committee 
meeting attended. Total compensation shall not 
exceed $100 per month. 

(g) Any member who misses three regularly 
scheduled meetings of the Commission in any 
12-month period without the express approval of 
the Commission given at a regularly scheduled 
meeting will be deemed to have resigned from 
the Commission. 

(h) The Commission shall appoint an Execu- 
tive Director, who shall serve at the pleasure of 
the Commission and shall not be subject to the 
civil service provisions of the Charter. The Ex- 
ecutive Director shall possess the qualifications 
and experience essential to the administration of 
the Southeast Community Facility. The Execu- 
tive Director shall be responsible for the enforce- 
ment of the rules and regulations of the Commis- 
sion and shall manage the daily activities of the 
Southeast Community Facility not undertaken 
by lessees. (Ord. 438-87, App. 11/12/87; amended 
by Ord. 407-89, App. .11/8/89; Ord. 287-96, App. 
7/12/96; Ord. 108-00, File No. 000539, App. 5/26/ 
2000) 

SEC. 54.3. POWERS AND DUTIES OF 
THE COMMISSION. 

The powers and duties of the Commission 
shall be limited to those necessary to: 

(a) Provide guidance necessary for the es- 
tablishment, retention and enhancement of busi- 
ness activities of the greenhouse, educational 
and job skills centers, child care and senior 
activities centers, and any other appropriate 
activities at the Southeast Community Facility; 

(b) Provide guidance to ensure that opera- 
tion of the facility enhances opportunities first 
for the benefit of the residents of the Bayview- 
Hunters Point community and thereafter for the 
benefit of all other residents of the City and 
County of San Francisco to engage in employ- 
ment training and educational activities; 

(c) Review and provide guidance on budget 
matters necessarily affecting the development 
and improvement of operations of the green- 



house, educational and job skills centers, child 
care and senior activities centers, and any other 
appropriate activities at the Southeast Commu- 
nity Facility; 

(d) Review and provide guidance regarding 
proposed lessees and agreements with qualified 
private, community, public assistance and horti- 
cultural organizations; 

(e) Provide policy guidance necessary to en- 
sure compliance with all relevant municipal. 
State and federal laws and regulations, includ- 
ing, but not limited to, construction grant agree- 
ments, regulations and orders; 

(f) Review and provide guidance on a regu- 
lar basis on budgetary matters related to the 
operation and maintenance expenses at the South- 
east Community Facility. (Ord. 438-87, App. 11/ 
12/87) 

SEC. 54.4. SURPLUS FUNDS. 

(a) In accordance with State and federal 
grant agreements, regulations and orders, all 
proceeds from the leasing of the Southeast Com- 
munity Facility shall be used to defray City and 
County costs of operating and administering the 
facilities. 

(b) Proceeds from the leasing of the facili- 
ties that exceed the costs of operating and ad- 
ministering the facilities, as calculated at the 
end of the fiscal year, shall be known as "surplus 
funds." 

(c) Subject to the budgetary and fiscal re- 
quirements of the Charter, the Commission may 
allocate surplus funds accrued during the prior 
fiscal year for certain uses related to the opera- 
tions and activities of the Southeast Community 
Facility. 

(d) Surplus funds may be allocated for the 
following purposes: 

(1) Scholarships first for residents of the 
Bayview-Hunters Point community and thereaf- 
ter for all other residents of the City and County 
of San Francisco to attend classes and other 
educational activities at the Southeast Commu- 
nity Facility or other accredited institutions of 
education; 



4225 Southeast Coniniunity Facility Commission Sec. 54.4. 



(2) Scholarships first for children residing 
in the Baj^iew-Hunters Point community and 
thereafter for all other resident children of the 
City and County of San Francisco to attend child 
care centers at the Southeast Community Facil- 
ity or other State-licensed child care providers; 

(3) Supplementary funding for job training 
programs and activities at the Southeast Com- 
munity Facility; 

(4) Supplementary funding for community 
agencies which address the needs as identified in 
Section 54.1., Findings. 

(e) There is hereby established a reserve 
fund to consist of 10 percent of each year's 
budget surplus for the facility, as available, to be 
used for the purpose of facility maintenance only 
This reserve fund will be maintained for a five- 
year period, and the use of this reserve fund will 
be reviewed at the termination of the five-year 
period. (Ord. 438-87, App. 11/12/87; amended by 
Ord. 287-96, App. 7/12/96) 



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CHAPTER 56: DEVELOPMENT AGREEMENTS 



Sec. 56.1. Findings. 

Sec. 56.2. Purpose and Applicability. 

Sec. 56.3. Definitions. 

Sec. 56.4. Filing of Application; Forms; 

Initial Notice and Hearing. 
Sec. 56.5. Form of Agreement. 

Sec. 56.6. Signatories to the Development 

Agreement. 
Sec. 56.7. Contents of Development 

Agreement. 
Sec. 56.8. Notice. 

Sec. 56.9. Rules Governing Conduct of 

Hearing. 
Sec. 56.10. Development Agreement 

Negotiation Report and 

Documents. 
Sec. 56.11. Collateral Agreements. 
Sec. 56.12. Irregularity in Proceedings. 
Sec. 56.13. Determination by Commission. 

Sec. 56.14. Decision by Board of 

Supervisors. 
Sec. 56.15. Amendment and Termination of 

an Executed Development 

Agreement by Mutual Consent. 
Sec. 56.16. Recordation of Development 

Agreements Amendment or 

Termination. 

Sec. 56.17. Periodic Review. 

Sec. 56.18. Modification or Termination. 

Sec. 56.19. Limitation on Actions. 

Sec. 56.20. Fee. 

SEC. 56.1. FINDINGS. 

The Board of Supervisors ("Board") concurs 
with the State Legislature in finding that: 

(a) The lack of certainty in the approval of 
development projects can result in a waste of 
resources, escalate the cost of housing and other 
development to the consumer, and discourage 
investment in and commitment to comprehen- 



sive planning and development of infrastructure 
and public facilities which would make maxi- 
mum efficient utilization of resources at the least 
economic cost to the public. 

(b) Assurance to the applicant/developer for 
a development project that upon approval of the 
project, the applicantydeveloper miay proceed with 
the project in accordance with specified policies, 
rules and regulations, and subject to conditions 
of approval, will strengthen the public planning 
process, encourage private participation in com- 
prehensive planning, and reduce the economic 
costs of development. (Added by Ord. 372-88, 
App. 8/10/88) 

SEC. 56.2. PURPOSE AND 
APPLICABILITY. 

(a) The purpose of this Chapter is to 
strengthen the public planning process by en- 
couraging private participation in the achieve- 
ment of comprehensive planning goals and re- 
ducing the economic costs of development. A 
development agreement reduces the risks asso- 
ciated with development, thereby enhancing the 
City's ability to obtain public benefits beyond 
those achievable through existing ordinances 
and regulations. To accomplish this purpose the 
procedures, requirements and other provisions 
of this Chapter are necessary to promote orderly 
growth and development (such £ls, where appli- 
cable and appropriate, provision of housing, em- 
ployment and small business opportunities to all 
segments of the community including low in- 
come persons, minorities and women), to ensure 
provision for adequate public services and facili- 
ties at the least economic cost to the public, and 
to ensure community participation in determin- 
ing an equitable distribution of the benefits and 
costs associated with development. 

(b) Such agreem.ents shall only be used for 
(1) affordable housing developments or (2) large 
multi-phase and/or mixed-use developments in- 
volving public improvements, seirvices, or facili- 



4247 



Sec. 56.2. 



San Francisco - Administrative Code 



4248 



ties installations, requiring several years to com- 
plete, as defined below in Section 56.3, or a 
housing development with a minimum of 1,000 
units, as defined below in Section 56.3. (Added 
by Ord. 372-88, App. 8/10/88; amended by Ord. 
67-05, File No. 041748, App. 4/15/2005) 

SEC. 56.3. DEFINITIONS. 

The following definitions shall apply for pur- 
poses of this Chapter: 

(a) "Affordable housing development" shall 
mean for purposes of Section 56.2(b)(1), any 
housing development which has a minimum of 
30 percent of its units affordable to low income 
households, and a total of 60 percent of its units 
affordable to households, as defined by the U.S. 
Census, whose immediate household income does 
not exceed 120 percent of the median household 
income for the San Francisco Primary Metropoli- 
tan Statistical Area, with the remaining 40 per- 
cent of its units unrestricted as to affordability. 
For purposes of this definition of "affordable 
housing development," "low income" shall mean 
the income of households, as defined by the U.S. 
Census whose immediate household income does 
not exceed 80 percent of the median household 
income for the San Francisco Primary Metropoli- 
tan Statistical Area. "Median household income" 
for the San Francisco Primary Metropolitan Sta- 
tistical Area shall be as determined by the U.S. 
Department of Housing and Urban Development 
and adjusted according to the determination of 
that Department and published from time to 
time. In the event that such income determina- 
tions are no longer published by the Department 
of Housing and Urban Development, median 
household income shall mean the median gross 
yearly income of a household in the City and 
County of San Francisco, adjusted for household 
size, as published periodically by the California 
Department of Housing and Community Devel- 
opment. Such affordable housing development 
may include neighborhood commercial facilities 
which are physically and financially an integral 
part of the affordable housing project and which 
will provide services to local residents. 



(b) "Applicant/Developer" shall mean a per- 
son or entity who has legal or equitable interest 
in the real property which is the subject of the 
proposed or executed development agreement for 
an "affordable housing development" or a "large 
multi-phase and/or mixed-use development," as 
those terms are defined herein, or such person's 
or entity's authorized agent or successor in in- 
terest; provided, however, that an entity which is 
subject to the requirements of City Planning 
Code Section 304.5 relating to institutional mas- 
ter plans does not qualify as an applicant for a 
development agreement. 

(c) "Collateral agreement" shall mean a writ- 
ten contract entered into by the applicant/ 
developer and/or governmental agencies with 
other entities (including, but not limited to, 
community coalitions) for the purpose of having 
said entities provide for and implement social, 
economic, or environmental benefits or pro- 
grams; provided, however, that such term does 
not include agreements between the applicant/ 
developer or governmental agencies and (1) con- 
struction contractors and subcontractors, (2) con- 
struction managers, (3) material suppliers, and 
(4) architects, engineers, and lawyers for custom- 
ary architectural, engineering or legal services. 

(d) "Commission" shall mean the City Plan- 
ning Commission. 

(e) "Director" shall mean the Director of 
Planning. 

(f) "Housing development with a minimum 
of 1,000 units" shall mean a proposed residential 
development project which: (1) is on a site which 
exceeds two and one-half acres in area, (2) in- 
cludes two or more buildings to be constructed on 
the site, and (3) includes a proposal for construct- 
ing or participating in providing, either off-site 
or on-site, public improvements, facilities, or 
services beyond those achievable through exist- 
ing ordinances and regulations. 

(g) "Large multi-phase and/or mixed-use de- 
velopment" shall mean a proposed development 
project which: (1) is on a site which exceeds five 
acres in area, (2) includes two or more buildings 
to be constructed sequentially on the site, and (3) 
includes a proposal for constructing or partici- 



4249 



Development Agreements 



Sec. 56.6. 



pating in providing, either ofF-site or on-site, 
public improvements, facilities, or services be- 
yond those achievable through existing ordi- 
nances and regulations. 

(h) "Material modification" shall mean any 
proposed amendment or modification to either a 
proposed development agreement approved by 
the Commission, or a previously executed devel- 
opment agreement, which amendment or modi- 
fication is otherwise required by the terms of the 
development agreement, which changes any pro- 
vision thereof regarding the following: (1) dura- 
tion of the agreement; (2) permitted uses of the 
subject property; (3) density or intensity of the 
permitted uses; (4) location, height or size of any 
structures, buildings, or major features; (5) res- 
ervation or dedication of land; (6) any conditions, 
terms, restrictions and requirements relating to 
subsequent discretionary actions as to design, 
improvements, construction standards and speci- 
fications; (7) any other condition or covenant 
relating to the financing or phasing of the devel- 
opment which substantially modifies the use of 
the property, the phasing of the development, or 
the consideration exchanged between the parties 
as recited in the proposed development agree- 
ment; (8) the type, number, affordability level, 
and/or tenure of any proposed affordable housing 
as well as any change as to performance of such 
public benefits, including but not limited to tim- 
ing, phasing, method of performance or parties 
involved; or (9) any other terms or conditions of 
the development agreement if the development 
agreement provides that amendment of said speci- 
fied term or condition would be a material modi- 
fication. 

(i) "Minor modification" shall mean any 
amendment or modification to the development 
agreement which relates to any provision not 
deemed to be a "material modification." (Added 
by Ord. 372-88, App. 8/10/88; amended by Ord. 
67-05, File No. 041748, App. 4/15/2005) 

SEC. 56.4. FILING OF APPLICATION; 
FORMS; INITIAL NOTICE AND HEARING. 

(a) The Director may prescribe the form of 
the application for the preparation and imple- 
mentation of development agreements. 



(b) The applicant must list on the applica- 
tion the anticipated public benefits which would 
exceed those required by existing ordinances and 
regulations. The public benefits ultimately pro- 
vided by an approved development agreement 
may differ from those initially identified by the 
applicant/developer. The Director may require 
an applicant/developer to submit such additional 
information and supporting data as the Director 
considers necessary to process the application; 
provided, however, that the Director shall not 
require the applicant/developer to submit, as 
part of the application, special studies or analy- 
ses which the Director would customarily obtain 
through the environraental review process. 

(c) The Director shall endorse the applica- 
tion the date it is received. If the Director finds 
that the application is complete, the Director 
shall (1) accept the application for filing, (2) 
publish notice in the official newspaper of accep- 
tance of said application, (3) make the applica- 
tion publicly available, and (4) schedule a public 
hearing before the Commission within 30 days 
following receipt of a completed application. At 
said public hearing, the Director shall make a 
recommendation with respect to the fee to be 
paid by the applicant/developer as set forth in 
Section 56.20(b). (Added by Ord. 372-88, App. 
8/10/88) 

SEC. 56.5. FORM OF AGREEMENT. 

A proposed development agreement, and any 
modifications or amendments thereto, must be 
approved as to form by the City Attorney prior to 
anj'^ action by the Director, Commission or Board 
of Supervisors. (Added by Ord. 372-88, App. 
8/10/88) 

SEC. 56.6. SIGNATORIES TO THE 
DEVELOPMENT AGREEMENT. 

(a) Applicant. Only an applicant/devel- 
oper, as that term is defined in Section 56.3, may 
file an application to enter into a development 
agreement. 

(b) Governmental Agencies. In addition 
to the City and County of San Francisco and the 
applicant/developer, any federal, State or local 
governmental agency or body may be included as 



Sec. 56.6. 



San Francisco - Administrative Code 



4250 



a party or signatory to any development agree- 
ment. (Added by Ord. 372-88, App. 8/10/88) 

SEC. 56.7. CONTENTS OF 
DEVELOPMENT AGREEMENT. 

(a) Mandatory Contents. A development 
agreement, by its express terms or by reference 
to other documents, shall specify (1) the duration 
of the agreement, (2), the permitted uses of the 
property, (3) the density or intensity of use, (4) 
the maximum height and size of proposed build- 
ings, (5) the provisions for reservation or dedica- 
tion of land for public purposes, (6) for any 
project proposing housing, the number, type, 
afFordability and tenure of such housing, (7) the 
public benefits which would exceed those re- 
quired by existing ordinances and regulations, 
and (8) nondiscrimination and affirmative action 
provisions as provided in subsection (c) below. 

(b) Permitted Contents. The develop- 
ment agreement may (1) include conditions, terms, 
restrictions, and requirements for subsequent 
discretionary actions, (2) provide that construc- 
tion shall be commenced within a specified time 
and that the project or any phase thereof be 
completed within a specified time, (3) include 
terms and conditions relating to applicant/ 
developer and/or City financing or necessary 
public facilities and subsequent reimbursement 
by other private party beneficiaries, (4) require 
compliance with specified terms or conditions of 
any collateral agreements pursuant to Section 
56.11, and (5) include any other terms or condi- 
tions deemed appropriate in light of the facts and 
circumstances. 

(c) Nondiscrimination/Affirmative Ac- 
tion Requirements. 

( 1 ) Nondiscrimination Provisions of the 

Development Agreement. The development 
agreement shall include provisions obligating 
the applicant/developer not to discriminate on 
the grounds, or because of, race, color, creed, 
national origin, ancestry, age, sex, sexual orien- 
tation, disability or Acquired Immune Deficiency 
Syndrome or AIDS Related Condition (AIDS/ 
ARC), against any employee of, or applicant for 
employment with the applicant/developer or 



against any bidder or contractor for public works 
or improvements, or for a franchise, concession 
or lease of property, or for goods or services or 
supplies to be purchased by applicant/developer. 
The development agreement shall require that a 
similar provision be included in all subordinate 
agreements let, awarded, negotiated or entered 
into by the applicant/developer for the purpose of 
implementing the development agreement. 

(2) Affirmative Action Program. The de- 
velopment agreement shall include a detailed 
affirmative action and employment and training 
program (including without limitation, programs 
relating to women, minority and locally-owned 
business enterprises), containing goals and time- 
tables and a program for implementation of the 
affirmative action program. For example, pro- 
grams such as the following may be included: 

(i) Apprenticeship where approved pro- 
grams are functioning, and other on-the-job train- 
ing for a nonapprenticeable occupation; 

(ii) Classroom preparation for the job when 
not apprenticeable; 

(iii) Preapprenticeship education and prepa- 
ration; 

(iv) Upgrading training and opportunities; 

(v) The entry of qualified women and minor- 
ity journejmien into the industry; and 

(vi) Encouraging the use of contractors, sub- 
contractors and suppliers of all ethnic groups, 
and encouraging the full and equitable partici- 
pation of minority and women business enter- 
prises and local businesses (as defined in Section 
12D of this Code and implementing regulations) 
in the provision of goods and services on a 
contractual basis. 

(3) Reporting and Monitoring. The de- 
velopment agreement shall specify a reporting 
and monitoring process to ensure compliance 
with the non-discrimination and affirmative ac- 
tion requirements. The reporting and monitoring 
process shall include, but not be limited to, 
requirements that: 

(i) A compliance monitor who is not an 
agent or employee of the applicant/developer be 
designated to report to the Director regarding 



4251 



Development Agreements 



Sec. 56.9. 



the applicant/developer's compliance with the 
nondiscrimination and affirmative action require- 
ments; 

(ii) The appHcant/developer permit the com- 
phance monitor or the Director or his designee 
reasonable access to pertinent employment and 
contracting records, and other pertinent data 
and records, as specified in the Development 
Agreement for the purpose of ascertaining com- 
pliance with the nondiscrimination and affirma- 
tive action provisions of the development agree- 
ment; 

(iii) The applicant/developer annually file a 
compliance report with the compliance monitor 
and the Director detailing performance pursuant 
to its affirmative action program, and the com- 
pliance monitor annually reports its findings to 
the Director; such reports shall be included in 
and subject to the periodic review procedure set 
forth in Sec. 56.17. (Added by Ord. 372-88, App. 
8/10/88) 

SEC. 56.8. NOTICE. 

The Director shall give notice of intention to 
consider adoption, amendment, modification, or 
termination of a development agreement for each 
public hearing required to be held by the Com- 
mission under this Chapter. The Clerk of the 
Board of Supervisors shall give such notice for 
each public hearing required to be held by the 
Board of Supervisors. Such notices shall be in 
addition to any other notice as may be required 
by law for other actions to be considered concur- 
rently with the development agreement. 

(a) Form of Notice. 

(1) The time and place of the hearing; 

(2) A general summary of the terms of the 
proposed development agreement or amendment 
to be considered, including a general description 
of the area affected, and the public benefits to be 
provided; and 

(3) Other information which the Director, or 
Clerk of the Board of Supervisors, considers 
necessary or desirable. 



(b) Time and Manner of Notice. 

(1) Publication and Mailing. Notice of 
hearing shall be provided in the same manner as 
that required in City Planning Code Section 
306.3 for amendments to that Code which would 
reclassify land; where mailed notice is otherwise 
required by law for other actions to be considered 
concurrently with the development agreement, 
notice of a public hearing before the Commission 
on the development agreement shall be included 
on the next Commission calendar to be mailed 
following the date of publication of notice in the 
official newspaper. 

(2) Notice to Local Agencies. Notice of 
the hearing shall also be mailed at least 10 days 
prior to the hearing to any local public agency 
expected to provide water, transit, sewage, streets, 
schools, or other essential facilities or services to 
the project, whose ability to provide those facili- 
ties and services may be significantly affected by 
the development agreement. 

(c) Failure to Receive Notice. The failure 
of any person to receive notice required by law 
does not affect the authority of the City and 
County of San Francisco to enter into a develop- 
ment agreement. (Added by Ord. 372-88, App. 
8/10/88; amended by Ord. 59-91, App. 2/27/91) 

SEC. 56.9. RULES GOVERNING 
CONDUCT OF HEARING. 

The Commission's public hearing on the pro- 
posed development agreement shall be con- 
ducted in accordance with the procedure for the 
conduct of reclassification hearings as provided 
in Subsections (b) and (c) of Section 306.4 of the 
City Planning Code. Such public hearing on the 
proposed development agreement shall be held 
prior to or concurrently with the public hearing 
for consideration of any other Commission action 
deemed necessary to the approval or implemen- 
tation of the proposed development agi'eement, 
unless the Commission determines, after a duly 
noticed public hearing pursuant to Section 56.8, 
that proceeding in a different manner would 
fur1:her the public interest; provided, however, 
that any required action under the California 



Sec. 56.9. 



San Francisco - Administrative Code 



4252 



Environmental Quality Act shall not be affected 
by this Section. (Added by Ord. 372-88, App. 
8/10/88) 

SEC. 56.10. DEVELOPMENT 
AGREEMENT NEGOTIATION REPORT 
AND DOCUMENTS. 

(a) Report. The Director shall prepare a 
report on development agreement negotiations 
between the applicant and the City and County 
of San Francisco (City), which report shall be 
distributed to the Commission and Board of 
Supervisors, and shall be available for public 
review 20 days prior to the first public hearing 
on the proposed development agreement. Said 
report shall include, for each negotiation session 
between the applicant and the City: (1) an atten- 
dance list; (2) a summary of the topics discussed; 
and (3) a notation as to any terms and conditions 
of the development agreement agreed upon be- 
tween the applicant and the City. 

(b) Documents. The Director shall (1) main- 
tain a file containing documents exchanged be- 
tween the applicant/developer and the City's 
executive offices and departments; and (2) en- 
deavor to obtain copies and maintain a list of all 
correspondence which executive offices and de- 
partments received from and sent to the public 
relating to the development agreement. The Di- 
rector shall make said documents and the corre- 
spondence list available for public review 20 
days prior to the first public hearing on the 
proposed development agreement. 

(c) Update of Report, Documents, and 
Correspondence List. The Director shall up- 
date the negotiation session report and the cor- 
respondence list, and continue to maintain a file 
of documents exchanged between the applicant/ 
developer and the City until a development agree- 
ment is finally approved. The Director shall 
make the updated report, correspondence list, 
and documents available to the public at least 
five working days before each public hearing on 
the proposed development agreement. 

(d) Remedies. No action, inaction or recom- 
mendation regarding the proposed development 
agreement shall be held void or invalid or be set 



aside by a court by reason of any error, irregu- 
larity, informality, neglect or omission ("error") 
which may occur with respect to City compliance 
with this Section 56.10. This section is not in- 
tended to affect rights and remedies with respect 
to public records otherwise provided by law. 
(Added by Ord. 372-88, App. 8/10/88) 

SEC. 56.11. COLLATERAL 
AGREEMENTS. 

(a) Filing. In order to qualify for consider- 
ation under the provisions of this section, the 
party to the collateral agreement seeking such 
consideration must: (1) submit a copy of the 
executed collateral agreement to the Director, (2) 
identify the specific terms and conditions of said 
collateral agreement which said party believes 
are necessary to achieve the public purposes 
sought to be achieved by the City and County 
through the development agreement process, and 
(3) provide contemporaneous notice to any other 
party or parties to the collateral agreement or 
the development agreement that a request for 
consideration pursuant to this section was filed. 
The Director shall forward copies of all collateral 
agreements received to the City Attorney's Office 
for review. 

(b) Recommendation of the Director 
Prior to the First Public Hearing on the 
Proposed Development Agreement. 

(1) The Director is obligated to consider and 
make a recommendation only as to those collat- 
eral agreements which satisfy the provisions of 
Section 56.11(a) above, and which are received 
by the Director within seven days after the date 
of publication of notice of the first hearing on the 
proposed development agreement. The Director 
shall consider those collateral agreements which 
are on the list provided pursuant to Section 
56.11(d) below. 

(2) With respect to collateral agreements 
received pursuant to the provisions set forth 
above, the Director shall prepare a report to the 
Commission on said collateral agreements. If the 
Director finds that applicant compliance with 
certain specified terms or conditions of said col- 
lateral agreements is necessary to achieve the 



4253 



Development Agreements 



Sec. 56.13. 



public purposes sought by the City through the 
development agreement process, then the Direc- 
tor shall recommend that such terms or condi- 
tions be incorporated into the proposed develop- 
ment agreement. If the Director recommends 
incorporation into the development agreement of 
any terms or conditions of any collateral agree- 
ments, then the Director's report shall also note 
whether the other party or parties to the collat- 
eral agreement or proposed development agree- 
ment objects, and the basis for that objection. 

(3) The provisions of this section are not 
intended to limit the power of the Commission or 
the Board to amend the proposed development 
agreement to incorporate terms or conditions of 
collateral agreements, 

(c) Annual Recommendation of the Di- 
rector. After execution of a development agree- 
ment, 

(1) The Director shall consider and make a 
recommendation as to those collateral agree- 
ments which satisfy the provisions of Section 
56.11(a) above, and which are received 30 days 
prior to the date scheduled for periodic review, as 
determined pursuant to Section 56.17(a). The 
Director shall consider those collateral agree- 
ments which are on the list provided pursuant to 
Section 56.11 (d) below. 

(2) With respect to collateral agreements 
received pursuant to the provisions set forth 
above, the Director shall prepare a report to the 
Commission on said collateral agreements. The 
Director shall also consult with the applicant/ 
developer concerning said collateral agreements. 
If the Director finds that applicant/developer 
compliance with certain specified terms or con- 
ditions of said collateral agreements would sub- 
stantially further attainment of the public pur- 
poses which were recited as inducement for 
entering into the development agreement, then 
the Director shall recommend that the Commis- 
sion propose an amendment to the development 
agreement to incorporate said terms and condi- 
tions. If the Director recommends proposal of an 
amendment to incorporate into the development 
agreement specified terms or conditions of any 
collateral agreements, then the Director's report 



shall also note whether the other party or parties 
to the collateral agreement or development agree- 
ment objects, and the basis for that objection. 

(d) Applicant/Developer Disclosure of 
Collateral Agreements. 

(1) At least 21 days prior to the first hear- 
ing on the proposed development agreement, the 
applicant/developer shall provide the Director, 
for the Director's consideration, a list of all 
collateral agreements as defined in Section 56.3(c) 
that have been entered into by the applicant/ 
developer. 

(2) At least 30 days prior to the date sched- 
uled for periodic review pursuant to Section 
56.17(a), the applicant/developer shall provide 
the Director, for the Director's consideration, an 
update to the list prepared pursuant to Subsec- 
tion (d)(1) above, or any previous list prepared 
pursuant to this Subsection (d)(2), as applicable, 
identifying all such collateral agreements en- 
tered into subsequent to the date of the first list, 
or subsequent updates, as appropriate. (Added 
by Ord. 372-88, App. 8/10/88) 

SEC. 56.12. IRREGULARITY IN 
PROCEEDINGS. 

No action, inaction or recommendation re- 
garding the proposed development agreement or 
anj?- proposed amendment shall be held void or 
invalid or be set aside by a court by reason of any 
error, irregularity, informality, neglect or omis- 
sion ("error") as to any matter pertaining to the 
application, notice, finding, record, hearing, re- 
port, summary, recommendation, or any matters 
of procedure whatever unless after an examina- 
tion of the entire record, the court is of the 
opinion that the error complained of was preju- 
dicial and that by reason of the error the com- 
plaining party sustained and suffered substan- 
tial injury, and that a different result would have 
been probable if the error had not occurred or 
existed. There is no presumption that error is 
prejudicial or that injury resulted if error is 
shown. (Added by Ord. 372-88, App. 8/10/88) 

SEC. 56.13. DETERMINATION BY 
COMMISSION. 

(a) Public Hearing. The Commission shall 
hold a public hearing to consider and act on a 
proposed development agreement after provid- 
ing notice as required under Section 56.8. 



Sec. 56.13. 



San Francisco - Administrative Code 



4254 



(b) Recommendations to Board of Su- 
pervisors. Following the public hearing, the 
Commission may approve or disapprove the pro- 
posed development agreement, or may modify 
the proposed development agreement as it deter- 
mines appropriate. The Commission shall make 
its final recommendation to the Board of Super- 
visors which shall include the Commission's de- 
termination of whether the development agree- 
ment proposed is consistent with the objectives, 
policies, general land uses and programs speci- 
fied in the general plan and any applicable area 
or specific plan, and the priority policies enumer- 
ated in City Planning Code Section 101.1. The 
decision of the Commission shall be rendered 
within 90 days from the date of conclusion of the 
hearing; failure of the Commission to act within 
the prescribed time shall be deemed to constitute 
disapproval. (Added by Ord. 372-88, App. 8/10/ 
88) 

SEC. 56.14. DECISION BY BOARD OF 
SUPERVISORS. 

(a) Action by Board of Supervisors. The 

Board of Supervisors shall hold a public hearing 
on the proposed development agreement ap- 
proved by the Commission. After the Board of 
Supervisors completes its public hearing, it may 
approve or disapprove the proposed development 
agreement recommended by the Commission. If 
the Commission disapproves the proposed devel- 
opment agreement, that decision shall be final 
unless the applicant/developer appeals the 
Commission's determination to the Board of Su- 
pervisors. The applicant/developer may appeal 
by filing a letter with the Clerk of the Board of 
Supervisors within 10 days following the Com- 
mission's disapproval of the proposed develop- 
ment agreement. The procedures for the Board's 
hearing and decision shall be the same as those 
set forth in City Planning Code Sections 308.1(c) 
and 308.1(d) with respect to an appeal of a 
Commission disapproval of a City Planning Code 
amendment initiated by application of one or 
more interested property owners. 

(b) Material Modification of the 
Commission's Recommended Development 
Agreement. The Board of Supervisors may adopt 



a motion proposing a material modification to a 
development agreement recommended by the 
Commission, as defined in Section 56.3 herein. 
In such event, the material modification must be 
referred back to the Commission for report and 
recommendation pursuant to the provisions of 
Subdivision (c) below. However, if the Commis- 
sion previously considered and specifically re- 
jected the proposed material modification, then 
such modification need not be referred back to 
the Commission. The Board of Supervisors may 
adopt any minor modification to the proposed 
development agreement recommended by the 
Commission which it determines appropriate 
without referring the proposal back to the Com- 
mission. 

(c) Consideration of Material Modifica- 
tion By the Commission. The Commission 
shall hold a public hearing and render a decision 
on any proposed material modification for- 
warded to the Commission by motion of the 
Board within 90 days from the date of referral of 
the proposed modification by the Board to the 
Commission; provided, however, if the Commis- 
sion has not acted upon and returned the pro- 
posed material modification within such 90 day 
period, the proposal shall be deemed disap- 
proved by the Commission unless the Board, by 
resolution, extends the prescribed time within 
which the Commission is to render its decision. 

(d) Effect of Commission Action on Pro- 
posed Material Modification. The Board of 
Supervisors shall hold public hearing to consider 
the Commission's action on the proposed mate- 
rial modification. If the Commission approves 
the Board's proposed material modification, the 
Board may adopt the modification to the agree- 
ment by majority vote. If the Commission disap- 
proves the Board's proposed material modifica- 
tion, or has previously specifically rejected the 
proposed material modification, then the Board 
may adopt the material modification to the de- 
velopment agreement by a majority vote, unless 
said modification would reclassify property or 
would establish, abolish, or modify a setback 
line, in which case the modification may be 
adopted by the Board only by a vote of not less 
than of all of the members of said Board. 



4255 



Development Agreements 



Sec. 56.16. 



(e) Consistency With General and Spe- 
cific Plans. The Board of Supervisors may not 
approve the development agreement unless it 
receives the Commission's determination that 
the agreement is consistent with the Master 
Plan, any applicable area or specific plan and the 
Priority Policies enumerated in City Planning 
Section 101.1. 

(f) Approval of Development Agreement. 

If the Board of Supervisors approves the devel- 
opment agreement, it shall do so by the adoption 
of an ordinance. The Board of Supervisors may 
not vote on the development agreement ordi- 
nance on second reading unless the final version 
of the development agreement ordinance is avail- 
able for public review at least two working days 
prior to the second reading. The development 
agreement shall take effect upon its execution by 
all parties following the effective date of the 
ordinance. (Added by Ord. 372-88, App. 8/10/88; 
amended by Ord. 59-91, App. 2/27/91) 

SEC. 56.15. AMENDMENT AND 
TERMINATION OF AN EXECUTED 
DEVELOPMENT AGREEMENT BY 
MUTUAL CONSENT. 

(a) The development agreement may fur- 
ther define the extent to which changes in the 
project will require an amendment to the devel- 
opment agreement. 

(b) Either the applicant/developer or the 
City and County may propose an amendment to, 
or cancellation in whole or in part of, any devel- 
opment agreement. Any amendment or cancella- 
tion shall be by mutual consent of the parties, 
except as otherwise provided in the development 
agreement or in Section 56.16. 

(c) The procedure for proposing and adopt- 
ing an amendment which constitutes (1) a mate- 
rial modification, (2) the termination in whole or 
in part of the development agreement, or (3) a 
minor modification which the Commission or 
Board has requested to review pursuant to sub- 
section (d) below, shall be the same as the pro- 
cedure for entering into an agreement in the first 
instance, including, but not limited to, the pro- 
cedures described in Section 56.4, above. 



(d) Any proposed amendment or modifica- 
tion to the development agreement which would 
constitute a minor modification shall not require 
a noticed public hearing before the parties may 
execute an amendment to the agreement. The 
Director may commit to a minor modification on 
behalf of the City if the following conditions are 
satisfied: 

(1) The Director has reached agreement with 
the other party or parties to the development 
agreement regarding the modification; 

(2) The Director has: (i) notified the Com- 
mission and the Board; (ii) caused notice of the 
amendment to be pulDlished in the official news- 
paper and included on the Commission calendar; 
(iii) caused notice to be mailed to the parties to a 
collateral agreement if specific terms or condi- 
tions of said collateral agreement were incorpo- 
rated into the development agreement and said 
terms or conditions would be modified by said 
minor modification; and (iv) caused notice to be 
mailed to persons who request to be so notified; 
and 

(3) No member of either the Board or Com- 
mission has requested an opportunity to review 
and consider the minor modification within 14 
days following receipt of the Director's notice. 
Upon expiration of the 14-day period, in the 
event that neither entity requests a hearing, the 
decision of the Director shall be final. (Added by 
Ord. 372-88, App. 8/10/88; amended by Ord. 
59-91, App. 2/27/91) 

SEC. 56.16. RECORDATION OF 
DEVELOPMENT AGREEMENTS 
AMENDMENT OR TERMINATION. 

(a) Within 10 days after the execution of the 
development agreement, or any amendments 
thereto, the Clerk of the Board of Supervisors 
shall have the agreement recorded with the 
County Recorder. 

(b) If the parties to the agreement or their 
successors in interest amend or terminate the 
agi'eement as provided herein, or if the Board of 
Supervisors terminates or modifies the agree- 
ment as provided herein for failure of the appli- 
cant/developer to coraply in good faith with the 



Sec. 56.16. 



San Francisco - Administrative Code 



4256 



terms or conditions of the agreement, the Clerk 
of the Board of Supervisors shall have notice of 
such action recorded with the County Recorder. 
(Added by Ord. 372-88, App. 8/10/88; amended 
by Ord. 59-91, App. 2/27/91) 

SEC. 56.17. PERIODIC REVIEW. 

(a) Time for and Initiation of Review. 

The Director shall conduct a review in order to 
ascertain whether the applicant/developer has in 
good faith complied with the development agree- 
ment. The review process shall commence at the 
beginning of the second week of January follow- 
ing final adoption of a development agreement, 
and at the same time each year thereafter for as 
long as the agreement is in effect. The applicant/ 
developer shall provide the Director with such 
information as is necessary for purposes of the 
compliance review. 

Prior to commencing review, the Director 
shall provide written notification to any party to 
a collateral agreement which the Director is 
aware of pursuant to Sections 56.11(a) and (d), 
above. Said notice shall summarize the periodic 
review process, advising recipients of the oppor- 
tunity to provide information regarding compli- 
ance with the development agreement. Upon 
request, the Director shall make reasonable at- 
tempts to consult with any party to a collateral 
agreement if specified terms and conditions of 
said agreement have been incorporated into the 
development agreement. Any report submitted 
to the Director by any party to a collateral 
agreement, if the terms or conditions of said 
collateral agreement have been incorporated into 
the development agreement, shall be transmit- 
ted to the Commission and/or Board of Supervi- 
sors. 

(b) Finding of Compliance by Director. 

If the Director finds on the basis of substantial 
evidence, that the applicant/developer has com- 
plied in good faith with the terms and conditions 
of the agreement, the Director shall notify the 
Commission and the Board of Supervisors of 
such determination, and shall at the same time 
cause notice of the determination to be published 
in the official newspaper and included on the 
Commission calendar. If no member of the Com- 



mission or the Board of Supervisors requests a 
public hearing to review the Director's determi- 
nation within 14 days of receipt of the Director's 
notice, the Director's determination shall be fi- 
nal. In such event, the Director shall issue a 
certificate of compliance, which shall be in re- 
cordable form and may be recorded by the devel- 
oper in the official records. The issuance of a 
certificate of compliance by the Director shall 
conclude the review for the applicable period. 

(c) Public Hearing Required. If the Di- 
rector determines on the basis of substantial 
evidence that the applicant/developer has not 
complied in good faith with the terms and con- 
ditions of the development agreement, or other- 
wise determines that the public interest would 
be served by further review, or if a member of the 
Commission or Board of Supervisors requests 
further review pursuant to Subsection (b) above, 
the Director shall make a report to the Commis- 
sion which shall conduct a public hearing on the 
matter. Any such public hearing must be held no 
sooner than 30 days, and no later than 60 days, 
after the Commission has received the Director's 
report. The Director shall provide to the applicant/ 
developer (1) written notice of the public hearing 
scheduled before the Commission at least 30 
days prior to the date of the hearing, and (2) a 
copy of the Director's report to the Commission 
on the date the report is issued. 

(d) Findings Upon Public Hearing. At 

the public hearing, the applicant/developer must 
demonstrate good faith compliance with the terms 
of the development agreement. The Commission 
shall determine upon the basis of substantial 
evidence whether the applicant/developer has 
complied in good faith with the terms of the 
development agreement. 

(e) Finding of Compliance by Commis- 
sion. If the Commission, after a hearing, deter- 
mines on the basis of substantial evidence that 
the applicant/developer has complied in good 
faith with the terms and conditions of the agree- 
ment during the period under review, the Com- 
mission shall instruct the Director to issue a 
certificate of compliance, which shall be in re- 
cordable form, may be recorded by the applicant/ 



4257 



Development Agreements 



Sec. 56.20. 



developer in the official records, and which shall 
conclude the review for that period; provided 
that the certificate shall not be issued until after 
the time has run for the Board to review the 
determination. Such determination shall be re- 
ported to the Board of Supervisors. Notice of 
such determination shall be transmitted to the 
Clerk of the Board of Supervisors within three 
days following the determination. The Board 
may adopt a motion by majority vote to review 
the decision of the Planning Commission within 
10 days of the date after the transmittal. A public 
hearing shall be held within 30 days after the 
date that the motion was adopted by the Board. 
The Board shall review all evidence and testi- 
mony presented to the Planning Commission, as 
well as any new evidence and testimony pre- 
sented at or before the public hearing. If the 
Board votes to overrule the determination of the 
Planning Commission, and refuses to approve 
issuance of a certificate of compliance, the Board 
shall adopt written findings in support of its 
determination within 10 days following the date 
of such determination. If the Board agrees with 
the determination of the Planning Commission, 
the Board shall notify the Planning Director to 
issue the certificate of compliance. 

(f) Finding of Failure of Compliance. If 

the Commission after a public hearing deter- 
mines on the basis of substantial evidence that 
the applicantydeveloper has not complied in good 
faith with the terms and conditions of the agree- 
ment during the period under review, the Com- 
mission shall either (1) extend the time for 
compliance upon a showing of good cause; or (2) 
shall initiate proceedings to modify or terminate 
the agreement pursuant to Section 56.18. (Added 
by Ord. 372-88, App. 8/10/88; amended by Ord. 
59-91, App. 2/27/91; Ord. 287-96, App. 7/12/96) 

SEC. 56.18. MODIFICATION OR 
TERMINATION. 

(a) If the Commission, upon a finding pur- 
suant to Subdivision (f) of Section 56.17, deter- 
mines that modification of the agreement is 
appropriate or that the agreement should be 
terminated, the Commission shall notify the 



applicant/developer in writing 30 days prior to 
anjT^ public hearing by the Board of Supervisors 
on the Commission's recommendations. 

(b) Modification or Termination. If the 

Commission, upon a finding pursuant to Subdi- 
vision (f) of Section 56.17, approves and recom- 
mends a modification or termination of the agree- 
ment, the Board of Supervisors shall hold a 
public hearing to consider and determine whether 
to adopt the Commission recommendation. The 
procedures governing Board action shall be the 
sarae as those applicable to the initial adoption 
of ai development agreement; provided, however, 
that consent of the applicant/developer is not 
required for terminati(Dn under this section. (Added 
by Ord. 372-88, App. 8/10/88) 

SEC. 56.19. LIMITATION ON ACTIONS. 

(a) Any decision of the Board pursuant to 
this Chapter shall be final. Any court action or 
proceeding to attack, review, set aside, void or 
annul any final decision or determination by the 
Board shall be commenced within 90 days after 
(1) the date such decision or determination is 
final, or (2) when acting by ordinance, after the 
ordinance is signed by the Mayor, or is otherwise 
finally approved. 

(b) Any court action or proceeding to attack, 
review, set aside, void or annul any final decision 
or determination by (1) the Director pursuant to 
Section 56.15(d)(iii), or (2) the Commission pur- 
sueint to Section 56.17(e) shall be coramenced 
within 90 days after said decision is final. (Added 
by Ord. 372-88, App. 8/10/88) 

SEC. 56.20. FEE. 

In order to defray the cost to the City and 
County of San Francisco of preparing, adopting, 
and amending a development a^^eement, a fee 
shall be charged and collected in accord with the 
procedures described below: 

(a) Cost Estimate and Application Re- 
port. The reasonable costs to the various depart- 
ments of the City and County of San Francisco 
including, but not limited to, the Department of 
City Planning, the Department of Public Works, 
the Mayor's Office of Housing and Economic 



Sec. 56.20. 



San Francisco - Administrative Code 



4258 



Development, the Real Estate Department and 
the City Attorney's Office for staff time, neces- 
sary consultant services and associated costs of 
materials and administration will vary accord- 
ing to the size and complexity of the project. 
Accordingly, upon receipt of an application for a 
development agreement, the Department of City 
Planning, after consultation with the applicant^ 
developer, any other parties identified in the 
application as parties to the proposed develop- 
ment agreement, and the affected City and County 
departments, shall prepare an estimated budget 
of the reasonable costs to be incurred by the City 
and County (1) in the preparation and adoption 
of the proposed development agreement, and (2) 
in the preparation of related documents where 
the costs incurred are not fully funded through 
other City fees or funds; provided, however, that 
if the projected time schedule exceeds one year, 
then the estimated budget shall be prepared for 
the initial 12-month period only, and the esti- 
mated budgets for any subsequent 12-month 
time periods shall be prepared prior to the end of 
the prior 12-month period. 

The Director shall also prepare a report for 
the Commission and Board describing the appli- 
cation, the anticipated public benefits listed in 
the application pursuant to Section 56.4(b), and 
the projected time schedule for development agree- 
ment negotiations. 

(b) Commission and Board of Supervi- 
sors Consideration. The Commission shall rec- 
ommend to the Board of Supervisors that a fee be 
imposed of a specified amount after reviewing 
the cost estimate prepared by the Director and 
conducting a public hearing pursuant to Section 
56.4(c). If the Board of Supervisors approves the 
fee amount by resolution, the fee shall be paid 
within 30 days after the effective date of the 
resolution. The fee shall be paid in a single 
installment or, at the discretion of the Director, 
in four equal installments, payable periodically 
over the estimated time frame for which the 
estimated budget has been prepared, with the 
first installment due within 30 days after the 
effective date of the fee resolution. 



(c) Deposit. The applicant/developer may 
prepay up to 50 percent of the amount of the fee 
(as calculated in the Director's estimated budget) 
into a Development Agreement Fund established 
for that purpose to enable the affected City 
Departments and agencies to begin work on the 
application. Such funds shall be deemed appro- 
priated for the purposes identified in the cost 
estimate, and shall be credited against the final 
fee amount specified in the fee resolution if such 
resolution is ultimately adopted by the Board of 
Supervisors. If the Board fails to adopt such fee 
resolution, then the Controller shall return any 
prepaid funds remaining unexpended or unobli- 
gated to the applicant/developer. If the Board 
approves a fee amount which is less than the 
amount which the applicant/developer prepaid, 
then the Controller shall return that portion of 
the difference between the fee amount and the 
prepaid funds which remains unexpended or 
unobligated to the applicantydeveloper. 

(d) Development Agreement Fund. There 
is hereby created a Development Agreement Fund 
wherein all funds received under the provisions 
of this section shall be deposited. All expendi- 
tures from the Fund shall be for purposes of 
reviewing the application for, or proposed mate- 
rial modification to, a development agreement 
and preparing the documents necessary to the 
approval of the development agreement, or a 
material modification thereto. Up to 50 percent 
of the annual cost estimate is hereby deemed 
appropriated for such purposes if the applicant^ 
developer chooses to prepay such amount pursu- 
ant to Subsection (c) above. All other funds are 
subject to the budget and fiscal powers of the 
Board of Supervisors. Interest earned on such 
amounts deposited in said Fund shall accrue to 
the Fund for the purposes set forth herein. Upon 
the execution of a development agreement, or 
withdrawal by an applicant/developer of its ap- 
plication, any unexpended or unobligated por- 
tion of the fee paid by the applicant/developer 
shall be returned to the applicant/developer. 

(e) Waiver for Affordable Housing. The 

Board of Supervisors may, by resolution, waive 
all or a portion of the fee required pursuant to 
this section for affordable housing developments. 



4259 Development Agreements Sec. 56.20. 



as that term is defined in Section 56.3, only if it 
finds that such waiver is necessary to achieve 
such affordable housing development. 

(f) Other Fees. Payment of fees charged 
under this section does not waive the fee require- 
ments of other ordinances. The fee provisions set 
forth herein are not intended to address fees or 
funding for parties to collateral agreements. 
(Added by Ord. 372-88, App. 8/10/88) 



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San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



CHAPTER 57: FILM COMMISSION 



Sec. 57.1. 
Sec. 57.2. 



Sec. 57.3. 
Sec. 57.4. 

Sec. 57.5. 



Sec. 57.6. 

Sec. 57.7. 
Sec. 57.8. 



Definitions. 

Establishment of Commission; 

Appointment of Commissioners; 

Qualifications; Terms of Office; 

Compensation. 

Powers and Duties. 

Authority and Duties of 

Executive Director. 

Authorization to Enter Into Use 

Contracts and Coordinate City 

Departments Regarding Film 

Companies; Consent of Relevant 

Departments; Cost Recovery; 

Sidewalk Closures and Postings. 

Requirements for Film 

Companies. 

Exceptions. 

Film Rebate Program. 



SEC. 57.1. DEFINITIONS. 

(a) "City" means the City and County of San 
Francisco. 

(b) "Commission" means the Film Commis- 
sion of the City and County of San Francisco. 

(c) "Film" means feature motion pictures, 
video tapes, television programs, commercials, 
still photography, documentaries, travelogues, 
music videos and other visual art forms; pro- 
vided however, that "film" shall not mean films 
or video tapes for private-family use or films by 
any news service or similar entity engaged in 
on-the-spot broadcasting of news events. 

(d) "Film company" means any individual, 
corporation, firm, partnership, or other organi- 
zation however organized engaged in film pro- 
duction. 

(e) "Film production" means the activity of 
making a film for commercial or noncommercial 
property where that activity (1) requires the use 
of City employees or equipment or (2) interferes 
with the ordinary use, safety and enjoyment of 



public right-of-ways or other property under the 
jurisdiction of the City (Added by Ord. 464-88, 
App. 10/12/88; amended by Ord. 425-89, App. 
11/21/89; Ord. 331-00, File No. 001967, App. 
12/28/2000; Ord. 70-06, File No. 060065, App. 
4/20/2006) 

SEC. 57.2. ESTABLISHMENT OF 
COMMISSION; APPOINTMENT OF 
COMMISSIONERS; QUALIFICATIONS; 
TERMS OF OFFICE; COMPENSATION. 

(a) Establishment of Cominission. A Film 
Commission for the City and County of San 
Francisco (referred to hereafter in this Chapter 
as "Commission") is hereby created consisting of 
eleven (11) members. 

(b) Appointment of Commissioners; 
Qualifications. The members of the Commis- 
sion shall be appointed by and serve at the 
pleasure of the Mayor. At least six members of 
the Commission shall be residents of the City 
and County of San Francisco. The Commission 
shall be composed of outstanding members of the 
community The membership of the Commission 
may include members who have experience in 
areas such as: Performing and Creative Arts, 
Production, Film or Sound Technology, Services 
and Facilities, Education, Presentation and Pro- 
ducing, Interactive Multimedia, and shall be 
broadly representative of ethnic, racial, gender, 
age and sexual orientation groups, and shall 
otherwise reflect the diversity of the City and 
County. The President of the Art Commission of 
the City and County shall be invited to serve as 
a nonvoting, ex-officio member of the Film Com- 
mission. 

(c) Term of Office. Commissioners shall be 
appointed for a term of office of four years, except 
that vacancies occurring during a term shall be 
filled for the unexpired term. 

(d) Compensation. Members of the Com- 
mission shall not be compensated for their ser- 
vice as members of the Commission. On a major- 



4283 



Supp. No. 1, September 2006 



Sec. 57.2. 



San Francisco - Administrative Code 



4284 



ity vote of the Commission, Commissioners may 
be reimbursed for expenses incurred resulting 
from their authorized activities on behalf of the 
Commission. 

(e) Selection of Chair. The Commission 
shall, annually, select a Chair who shall serve for 
a term of one year. The Commission may reap- 
point a Chair to serve additional terms. In addi- 
tion to any other authority vested in or duly 
charged to him or her, the Chair of the Commis- 
sion shall have the duty and authority to call 
meetings of the Commission and to maintain 
liaison with the Arts Commission from the per- 
spective of film arts. 

(f) Executive Director. The Commission 
shall appoint an Executive Director of the Com- 
mission who shall serve at the Commission's 
pleasure. The Executive Director shall act as the 
department head and appointing officer of the 
Commission pursuant to Charter Section 4.126. 
The Executive Director shall supervise the 
Commission's staff, and shall have other duties 
and responsibilities as provided in this Chapter. 
(Added by Ord. 425-89, App. 11/21/89; amended 
by Ord. 358-91, App. 10/2/91; Ord. 331-00, File 
No. 001967, App. 12/28/2000) 

SEC. 57.3. POWERS AND DUTIES. 

The Commission shall develop, recognize, 
and promote film activities in the City. The 
members shall work together to explore and 
promote long-term goals for film-making as a 
major emphasis of the City's economic and cul- 
tural base, and encourage the recognition of film 
arts as an art form with widespread economic 
components. The powers of the Commission shall 
include, but not be limited to: 

(a) Stimulating community awareness of the 
film art forms; 

(b) Promoting long-range investment in 
projects originating in the San Francisco area, 
such as scripts, film proposals, treatments, and 
shorter works; 

(c) Promoting awareness of film training 
and economic opportunities in the schools; 

(d) Promoting the San Francisco Bay Area 
as film destination; 



(e) Accepting gifts, devises and bequests as 
provided in Administrative Code Sections 10-116 
through 10.116-3; 

(f) Maintaining liaison with other specific 
interest groups, councils, organizations, and in- 
stitutions related to the film industry, and the 
maintenance of liaison with the Art Commission 
from the perspective of film arts; 

(g) Providing perspective for both the Mayor 
and the Board of Supervisors with respect to 
long-range promotion, development and plan- 
ning for a significant film arts base in San 
Francisco; 

(h) Adopting rules and regulations to imple- 
ment and further the purposes of this Chapter. 
(Added by Ord. 425-89, App. 11/21/89; amended 
by Ord. 358-91, App. 10/2/91; Ord. 331-00, File 
No. 001967, App. 12/28/2000) 



SEC. 57.4. AUTHORITY AND DUTIES OF 
EXECUTIVE DIRECTOR. 

In addition to any other authority vested in 
or duty charged to him or her, the Executive 
Director shall serve as the sole liaison between 
film companies and the various City depart- 
ments. In performing the duties of liaison, the 
Executive Director shall assist film companies in 
locating suitable locations and shall coordinate 
the efforts of the various City departments in 
connection with film production utilizing City 
property or employees. The Executive Director 
shall also be responsible for coordinating any 
film permits required by the City for film pro- 
ductions. (Formerly Sec. 57.8; added by Ord. 
464-88, App. 10/12/88; amended by Ord. 425-89, 
App. 11/2^89; Ord. 358-91, App. 10/2/91; amended 
and renumbered by Ord. 331-00, File No. 001967, 
App. 12/28/2000; Ord. 70-06, File No. 060065, 
App. 4/20/2006) 
Note: 

Former Sec. 57.4 was repealed by Ord. 331-00. 



Supp. No. 1, September 2006 



4285 



Film Commission 



Sec. 57.7. 



SEC. 57.5. AUTHORIZATION TO ENTER 
INTO USE CONTRACTS AND 
COORDINATE CITY DEPARTMENTS 
REGARDING FILM COMPANIES; 
CONSENT OF RELEVANT 
DEPARTMENTS; COST RECOVERY; 
SIDEWALK CLOSURE AND POSTING. 

(a) Use Contracts; Deposit of Funds. The 

Executive Director may enter into use contracts 
with organizations seeking to engage in film 
production. The Executive Director shall be the 
sole City representative authorized to negotiate 
use contracts. Such contracts shall, at a mini- 
mum, provide for the full recovery of costs in- 
curred by the various City departments in pro- 
viding the use of City employees, equipment and 
rental facilities or rental properties. Funds to 
reimburse City departments for costs incurred 
by those departments for the deplo3niient of 
personnel or equipment or use of rental facilities 
or rental properties shall be paid directly to 
those departments for deposit subject to the 
budget and fiscal provisions of the Charter. 

(b) Consent of Departments or Mayor. 

Where film production is to take place on prop- 
erty under the jurisdiction of City departments, 
the Executive Director's permission to use such 
property is subject to the consent of the depart- 
ment head or his or her designee or the Mayor or 
Mayor's designee. 

(c) Schedule of Costs. In addition to the 
reimbursement of City departments for the costs 
incurred by those departments in deploying per- 
sonnel or equipment, the Film Commission may, 
consistent with Charter Section 2.109, charge 
daily use fees to film companies seeking to en- 
gage in film production. Until a new schedule of 
use fees is approved by the Board of Supervisors, 
the use fees in existence on the effective date of 
this Section shall remain in effect. The revenue 
generated by such use fees shall be deposited in 
the San Francisco Film Production Fund. 

(d) Sidewalk Closures and Sign-Post- 
ing. The Film Commission may require that film 
companies use City personnel or City-approved 
vendors to post notice of the closure of City 
streets and sidewalks for film production, and 



may establish minimum sign-posting require- 
ments. Notwithstanding anjrthing to the con- 
trary in Section 724 of the Public Works Code, 
the Executive Director may authorize the tem- 
porary occupancy of public sidewalks for film 
production, with the consent of the Department 
of Public Works, subject to all requirements and 
conditions of the Department of Public Works 
and Department of Parking and Traffic. Street 
closures for film production shall be governed by 
applicable provisions of the Traffic Code. (Added 
by Ord. 464-88, App. 10/12/88; amended by Ord. 
425-89, App. 11/21/89; Ord. 358-91, App. 10/2/91; 
Ord. 287-96, App. 7/12/96; Ord. 331-00, File No. 
001967, App. 12/28/2000) 

SEC. 57.6. REQUIREMENTS FOR FILM 
COMPANIES. 

(a) Use Contracts. All film companies seek- 
ing to engage in film productions shall enter into 
use contracts with the Executive Director. 

(b) Insurance and Indemnification. As a 

condition of engaging in film productions, con- 
currently with entering into a use contract with 
the City for the utilization of City property or 
employees, film companies shall file with the 
Executive Director documentation of insurance 
and indemnification holding the City and County 
harmless from any liability. The amounts of such 
insurance and indemnification, and the suitabil- 
ity of the insuring entity, shall be determined by 
the City's Risk Manager in coordination with the 
Executive Director and other City departments. 
(Added by Ord. 464-88, App. 10/12/88; amended 
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 
10/2/91; Ord. 331-00, File No. 001967, App. 12/ 
28/2000) 

SEC. 57.7. EXCEPTIONS. 

Sections 57.5 and 57.6 of this Chapter shall 
not apply to film production occurring in the 
buildings or on the grounds of the San Francisco 
War Memorial Performing Arts Center, the Fine 
Arts Museums, the Asian Art Museum, the San 
Francisco Convention Facilities, the San Fran- 
cisco Port Commission, the San Francisco Recre- 
ation and Parks Commission, or where inconsis- 



Supp. No. 1, September 2006 



Sec. 57.7. 



San Francisco - Administrative Code 



4286 



tent with State law, the Charter or contractual 
agreements. (Formerly Sec. 57.11; added by Ord. 
464-88, App. 10/12/88; amended by Ord. 425-89, 
App. 11/21/89; Ord. 358-91, App. 10/2/91; amended 
and renumbered by Ord. 331-00, File No. 001967, 
App. 12/28/2000; Ord. 70-06, File No. 060065, 
App. 4/20/2006) 
Note: 

Former Sec. 57.7 was repealed by Ord. 331-00) 

SEC. 57.8. FILM REBATE PROGRAM 

(a) Purpose. The purpose of the Film Re- 
bate Program is to increase the number of quali- 
fied film productions being made in San Fran- 
cisco, increase the number of City residents 
employed in the filmmaking industry, and en- 
courage the resulting economic benefits to in- 
creased filmmaking in San Francisco. 

(b) Definitions. As used in this Section, 
the following terms shall have the following 
meanings: 

(1) "Principal photography" means the time 
period and phase of film production during which 
the main photography occurs. 

(2) "Qualified low-budget film production" 
means a feature-length film, television film, tele- 
vision pilot, or each episode of a television series, 
regardless of the medium used to create or 
convey it, that is: (i) produced by a film company 
that expends at least 55 percent of the total 
principal photography days exclusively in the 
City and (ii) has a total budget of no more than 
$3,000,000. "Qualified low-budget film produc- 
tion" shall not include: (i) a documentary film, 
news or current affairs program, interview or 
talk program, instructional film or program, film 
or program consisting primarily of stock footage, 
sporting event or sporting program, game show, 
award ceremony, film or program intended pri- 
marily for industrial, corporate or institutional 
end-users, fundraising film or program, commer- 
cials, music videos, or "reality" program; or (ii) a 
production for which records are required under 
Title 18 United States Code section 2257, to be 
maintained with respect to any performer in 
such production. 



(3) "Qualified film production" means a fea- 
ture-length film, television film, television pilot, 
or each episode of a television series, regardless 
of the medium used to create or convey it, that is 
created by a film company that expends at least 
65 percent of the total principal photography 
days exclusively in the City. "Qualified film pro- 
duction" shall not include: (i) a documentary 
film, news or current affairs program, interview 
or talk program, instructional film or program, 
film or program consisting primarily of stock 
footage, sporting event or sporting program, game 
show, award ceremony, film or program intended 
primarily for industrial, corporate or institu- 
tional end-users, fundraising film or program, 
commercials, music videos, or "reality" program; 
or (ii) a production for which records are required 
under Title 18 United States Code section 2257, 
to be maintained with respect to any performer 
in such production. 

(4) "Qualified production cost," means the 
following expenses of a qualified low-budget film 
production or a qualified film production: 

(A) Any fees or taxes paid to the City, or any 
of its constituent departments, the proceeds of 
which are placed in the general fund; 

(B) Any moneys paid to the City, or any of 
its constituent departments, for the use of City 
property, equipment, or employees, including, 
but not limited to additional police services as 
described in Chapter lOB of this Administrative 
Code; and 

(C) Any daily use fees charged by the Film 
Commission, pursuant to Section 57.5 of the 
Administrative Code, to engage in film produc- 
tion in the City. 

(c) Rebate Program. 

(1) Allowance of Rebate. A qualified low- 
budget film production or qualified film produc- 
tion that pays qualified production costs shall be 
entitled to a rebate, to be calculated as provided 
herein. 

(2) Amount of Rebate. The City shall pay 
one dollar for each dollar the qualified low bud- 
get film production or qualified film production 
paid in qualified production cost not to exceed 
$1.8 million dollars by June 30, 2009. The rebate 



Supp. No. 1, September 2006 



4287 



Film Commission 



Sec. 57.8. 



shall be paid from the fund into which the 
qualified production cost was originally depos- 
ited. In no event shall the amount of the rebate 
exceed the total amount of taxes that the quali- 
fied film production or qualified low budget film 
production paid to the City. The rebate shall not 
be paid from funds dedicated under bond or 
other legal financing covenants. 

(3) Implementation. After holding a public 
hearing, the Executive Director of the Film Com- 
mission, in consultation with the Controller, shall 
promulgate rules and regulations to establish 
the procedures for implementation of the Film 
Rebate Program. Such rules shall include provi- 
sions describing the application process, the stan- 
dards used to evaluate the applications, the 
documentation that will be required to substan- 
tiate the amount of the rebate, the appeal pro- 
cess, and any such other provisions as deemed 
necessary and appropriate to carry out the Film 
Rebate Program. 

(d) Reports. The Executive Director shall 
report annually to the Board of Supervisors on 
the implementation of the Film Rebate Program. 
The report shall include a list of each qualified 
film production, residency of employees, and the 
total of qualified production costs submitted and 
paid to each film production. Annually for the 
first three years after enactment of this Ordi- 
nance the Controller shall perform an assess- 
ment and review of the eff"ect of the Film Rebate 
Program. Based on such assessment and review, 
the Controller shall prepare and submit an analy- 
sis to the Board of Supervisors. The Analysis 
shall be based on criteria deemed relevant by the 
Controller, and may include but is not limited to 
data contained in the annual reports to the 
Board of Supervisors submitted by the Director 
of the Film Commission. 

(e) The Film Rebate Program shall expire 
on June 30, 2009, unless extended by ordinance. 
If the Film Rebate Program is not extended, the 
City Attorney shall cause this Section to be 
removed from future editions of the San Fran- 
cisco Municipal Code without further action of 
the Board. (Ord. 70-06, File No. 060065, App. 
4/20/2006) 



(Former Sec. 57.8 added by Ord. 464-88, App. 
10/12/88; amended by Ord. 425-89, App. 11/21/ 
89; Ord. 358-91, App. 10/2/91; amended and 
renumbered as 57.4 by Ord. 331-00, File No. 
001967, App. 12/28/2000) 

Sees. 57.9. and 57.10. 

(Added by Ord. 464-88, App. 10/12/88; amended 
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 
10/2/91; repealed by Ord. 331-00, File No. 001967, 
App. 12/28/2000) 

Sec. 57.11. 

(Added by Ord. 464-88, App. 10/12/88; amended 
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 
10/'i/91; amended and renumbered as 57.7 by 
Ord. 331-00, File No. 001967, App. 12/28/2000) 

Sees. 57.12 and 57.13. 

(Added by Ord. 464-88, App. 10/12/88; amended 
by Ord. 425-89, App. 11/21/89; Ord. 358-91, App. 
10/2/91; repealed by Ord. 331-00, File No. 001967, 
App. 12/28/2000) 



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CHAPTER 60: ASSISTED HOUSING PRESERVATION ORDINANCE 



Sec. 60.1. Title. 

Sec. 60.2. Purposes. 

Sec. 60.3. Findings. 

Sec. 60.4. Definitions. 

Sec. 60.5. Notice of Intent to Prepay 

and/or Terminate. 
Sec. 60.6. Public Hearing on Proposed 

Prepayment and/or 

Termination. 
Sec. 60.7. Relocation Benefits for 

Displacement Due to 

Conversion. 

Sec. 60.8. Right of Qualified Entities to 

Receive Offer for Purchase of an 
Assisted Housing Development. 

Sec. 60.9. Expiration of Rent Subsidy 

Contracts; Disclosure. 

Sec. 60.10. Administrative Relief. 

Sec. 60.11. Civil Actions. 

Sec. 60.12. Civil Penalties. 

Sec. 60.13. Rules and Regulations. 

Sec. 60.14. Severability. 

SEC. 60.1. TITLE. 

This Assisted Housing Preservation Ordi- 
nance is enacted as Chapter 60 of the Adminis- 
trative Code of the City and County of San 
Francisco. (Added by Ord. 332-90, App. 10/3/90) 

SEC. 60.2. PURPOSES. 

The purposes of this Chapter are to assist 
public and private efforts to ensure that housing 
affordable to very low, low and moderate income 
households is not permanently removed from the 
housing stock, to preserve and promote a supply 
of housing that is affordable to very low, low and 
moderate income residents in the community, to 
protect the diversity of the community by pre- 
venting displacement of very low, low and mod- 
erate income households, and to prevent home- 
lessness. 



This Chapter is enacted: 

(a) To assist efforts to ensure that the stock 
of affordable rental units in the community is 
preserved; 

(b) To assist efforts to ensure that very low, 
low^ and moderate income households are not 
unnecessarily displaced from subsidized housing 
units due to the owner's prepayment of loans or 
termination of rent subsidies v/hich have the 
effect of terminating restrictions on occupancy, 
rent, and use of such units; 

(c) To ensure that the City, concerned non- 
profit organizations and affected tenant house- 
holds receive adequate notice that affordability 
restrictions may terminate to enable them to 
respond to the potential proble^ms created by 
conversions of subsidized rental units; and 

(d) To ensure that the subsidized rental 
unit occupants are provided with information 
and assistance in the event of conversion of such 
units to market-rate housing. (Added by Ord. 
332-90, App. 10/3/90) 

SEC. 60.3. FINDINGS. 

The Board of Supervisors finds that: 

(a) For more than 50 years, federal, state 
and local governmental entities have initiated 
and maintained various housing progi'ams de- 
sigjQed to provide housing affordable to low and 
moderate income households. 

(b) Since the inception of these housing 
programs, demand for affordable subsidized rental 
units has consistently exceeded the supply of 
such units. 

(c) On May 12, 1989, the Mayor's Housing 
Advisory Committee for the City and County of 
San Francisco issued the draft Affordable Hous- 
ing Action Plan For San Francisco. The report 
concludes that "[t]he demand for housing, espe- 
cially for housing affordable to households earn- 
ing less than moderate income, greatly exceeds 
the availability of such housing" and that the 



4311 



Sec. 60.3. 



San Francisco - Administrative Code 



4312 



"preservation and improvement of the local ex- 
isting affordable housing stock, particularly for 
low and very low income households, must be 
made a priority." 

(d) The Federal Home Loan Bank has de- 
termined in the Federal Home Loan Bank Hous- 
ing Vacancy Survey conducted in September of 
1988 that the vacancy rate for all multi-family 
housing in San Francisco was approximately 1.6 
percent. 

(e) According to the Inventory of Federally- 
Subsidized Low-Income Units at Risk of Conver- 
sion issued on March 1, 1989 by the California 
Coalition for Rural Housing and the California 
Housing Partnership Corporation, approximately 
83 privately owned developments assisted with 
Federal funds are located in San Francisco. Some 
of these assisted developments contain units 
affordable to very low, low and moderate income 
households which are at risk of conversion to 
market-rate rental or ownership housing by the 
year 2008. These developments include approxi- 
mately 7,500 units carrying project-based rental 
subsidies under the Section 8 program. Approxi- 
mately 3,900 of these units are at risk of conver- 
sion to market-rate housing due to prepajrment 
of federal loans or termination of Section 8 
subsidies. Approximately 4,000 additional units 
already in nonprofit ownership are also at risk 
due to impending expiration of Section 8 con- 
tracts. 

(f) The California State Legislature has de- 
clared that there exists a severe shortage of 
housing affordable to very low, low and moderate 
income households, that such shortage is inimi- 
cal to the safety, health and welfare of the 
residents of the state, and that it is an economic 
benefit to the state and a public purpose to 
encourage the availability of adequate housing 
for very low, low and moderate income house- 
holds. 

(g) Section 101.1(b)(3) of the San Francisco 
Planning Code establishes as a Priority Policy 
for the San Francisco Master Plan "[t]hat the 
City's supply of affordable housing be preserved 
and enhanced." The Housing Element of the San 
Francisco General Plan establishes as one of its 



primary goals the preservation and expansion of 
the housing stock affordable to very low, low and 
moderate income households within the City. 
The California State Legislature has recently 
enacted provisions requiring the City to include 
in its Housing Element an analysis of existing 
assisted housing developments for which subsi- 
dies and applicable use restrictions may be ter- 
minated during the next 10 years, and a program 
for preserving such affordable units. The Legis- 
lature has also enacted provisions which clarify 
that the Low and Moderate Income Housing 
Fund moneys administered pursuant to the Health 
and Safety Code by redevelopment agencies may 
be expended for assisted housing preservation 
efforts. 

(h) The City's Housing Assistance Plan, Com- 
munity Development Objectives, and Compre- 
hensive Homeless Assistance Plan all establish 
the preservation and expansion of the supply of 
affordable housing as major policy objectives of 
the City 

(i) Under the federal housing programs de- 
signed to create and maintain privately owned, 
publicly assisted housing affordable to house- 
holds of very low, low and moderate income, 
including but not limited to the Section 221(d)(3), 
Section 236, Section 8 New Construction, Sub- 
stantial Rehabilitation and Moderate Rehabili- 
tation Programs, and the Section 8 Loan Man- 
agement Set Aside Program, some persons owning 
federally subsidized housing units may prepay 
federally subsidized loans prior to the end of the 
loan term, and/or are given the option upon 
renewal dates of rental subsidies not to renew 
such subsidies. The City recognizes the rights of 
owners of such housing units contained in such 
contracts with the federal government and that 
the owners of such housing are entitled by law to 
a fair return on their investment. 

(j) The owners of such housing units have 
enjoyed substantial financial benefits from par- 
ticipation in such government programs, includ- 
ing but not limited to: 

(1) Programs such as the Builder Sponsor 
Profit And Risk Allowance, which allowed origi- 
nal owners to credit a noncash contribution to- 
ward the 10 percent equity requirement; 



4313 



Assisted Housing Preservation Ordinance 



Sec. 60.3. 



(2) Calculation of the six percent return on 
the basis of 10 percent of project value, regard- 
less of the owner's actual cash investment; 

(3) Operating income subsidies; 

(4) Capital improvement loan subsidies; 

(5) Reduction of debt service in insured 
projects; 

(6) Mortgage modification, forbearance and 
workout policies which substantially reduced 
risk of foreclosure; 

(7) HUD regulatory preemption of local rent 
control; and 

(8) Tax benefits under the Tax Reform Act 
of 1976, the Economic Recovery Tax Act of 1981 
and the Deficit Reduction Act of 1984. Among the 
most significant of these tax benefits was the 
application of accelerated depreciation schedules 
to assisted housing developments. For example, 
in 1981, the United States Congress amended 
the United States Revenue Code to enable the 
owner of a low-income housing development to 
take advantage of special accelerated deprecia- 
tion rules. Under the 1981 amendments, such 
developments were allowed to be depreciated for 
tax purposes using the double declining balance 
method over a shortened 15-year period. This 
change in the Internal Revenue Code created a 
powerful financial incentive to increase the de- 
preciable basis of a development. Subsequent to 
the effective date of this change, many former 
owners of assisted housing developments partici- 
pated in transfers of ownership at inflated prices 
which greatly increased the depreciable basis of 
the developments, and the tax benefits of own- 
ership. In some cases, these tax benefits were 
abused when transfers involved the use of unen- 
forceable debt obligations to pay an inflated 
purchase price and thus the depreciable basis. In 
these transactions, loans which required no cur- 
rent pajTnent of principal or interest, or which 
carried no foreclosure remedy for default, were 
used primarily to inflate depreciable basis above 
the then-current value of the development. Such 
loans have little or no economic value other than 
as a device to inflate depreciable basis and 
increase tax benefits. The creation of these "pa- 
per" loans ceased when the Internal Revenue 



Code was amended by the Tax Reform Act of 
1986. The 1986 amendments removed the finan- 
cial incentives to inflate depreciable basis by 
instituting the passive activity and passive loss 
rules, by lengthening the period of depreciation 
for assisted housing developments to 27-V2 years, 
and by changing the method from double declin- 
ing balance to straight line. Therefore, the Board 
of Supervisors finds that the principal or interest 
due under loans created between the effective 
dates of the 1981 and 1986 amendments to the 
Internal Revenue Code, which are not required 
to be paid currently from the cash flow generated 
by operation of a development or which could not 
be foreclosed upon for failure to make payments, 
should not be included in the Fair Return Price. 

(k) The prepa5m:ient of federally subsidized 
loans and the failure to renew rental subsidies 
under federal prograims will terminate federal 
rent restrictions and will result in loss of housing 
units affordable to and the displacement of very 
low, low and moderate income households. 

(1) In the San Francisco Bay Area, 18,820 
units in 186 projects providing housing for thou- 
sands of very low, low and moderate income 
households may be directly and adversely af- 
fected by the prepajf-ment of Section 221(d)(3), 
Section 236, and Section 8 loans and the nonre- 
newal of Section 8 project-based subsidies. This 
regional loss of housing units affordable to very 
low, low and moderate income households will 
impact all communities within the Bay Area. 
The California Legislature has declared that all 
communities have an obligation to provide a fair 
sheire of the region's housing needs for very low, 
low and moderate income households. 

(m) Conversion of subsidized rental units to 
market-rate rental or ownership units will result 
in the displacement of very low, low and moder- 
ate income households residing in assisted hous- 
ing developments, and will also result in a per- 
manent loss from San Francisco's housing stock 
of housing units affordable to very low, low and 
moderate income households. The risk of such 
conversions constitutes a substantial and imme- 
diate threat to the welfare, health and safety of 
San Francisco's residents. Displacement of very 



Sec. 60.3. 



San Francisco - Administrative Code 



4314 



low and low income households, the currently 
inadequate supply of affordable housing units 
and the lack of federal, state and local funds to 
produce a sufficient supply of such units, com- 
bine to force more people into already overbur- 
dened emergency shelters, and onto the streets. 

(n) The loss of affordable rental units result- 
ing from conversion will have an adverse impact 
on the goal of preserving and expanding the 
existing stock of affordable housing, as well as an 
adverse impact on the City's housing and service 
programs by placing additional burdens on the 
City's limited housing resources and limited re- 
sources for providing emergency shelter and as- 
sociated services. 

(o) Conversions of subsidized rental units to 
nonsubsidized rental units present special prob- 
lems which would create conditions detrimental 
to the health, safety and welfare of the San 
Francisco community (Added by Ord. 332-90, 
App. 10/3/90) 

SEC. 60.4. DEFINITIONS. 

(a) "Assisted housing development" or "de- 
velopment" shall mean any multifamily rental 
housing building, or group of buildings under 
common ownership, comprised of four or more 
rental units, which development has received or 
receives any public subsidy, including, but not 
limited to, a mortgage loan, a mortgage interest 
subsidy, mortgage insurance or a rent subsidy 
from a federal, state or local governmental body 
or agency, whose rent levels are restricted so as 
to be affordable to very low, low and moderate 
income households. 

(b) "CHFA" shall mean the California Hous- 
ing Finance Agency and shall include any del- 
egatee of CHFA when such delegatee acts to 
administer a CHFA program. 

(c) "City" shall mean the City and County of 
San Francisco. 

(d) "Conversion" shall mean any of the fol- 
lowing with regard to a unit which was (i) a 
subsidized rental unit on the effective date of 



this Chapter, and (ii) is located in a development 
as to which prepayment, termination or repur- 
chase has occurred: 

(1) A rent increase, resulting in a rent ex- 
ceeding the rental payment allowed under the 
applicable use restrictions for a unit in the 
assisted housing development; 

(2) Demolition or other construction work 
on the unit which renders the unit uninhabit- 
able, is commenced; or 

(3) A change in use of the development of 
any unit within a development is commenced. 

(e) "Conversion date" shall mean the date 
on which conversion occurs. 

(f) "Converted unit" shall mean a subsi- 
dized rental unit that was subject to conversion. 

(g) "Director of Housing" shall mean the 
Deputy Mayor for Housing and Neighborhoods of 
the City and County of San Francisco and his or 
her designee, or if such position ceases to exist, 
such other qualified City official as shall be 
designated by the Mayor as the Mayor's agent 
for the enforcement of this Chapter. 

(h) "HUD" shall mean the United States 
Department of Housing and Urban Develop- 
ment, and shall include the Federal Housing 
Administration ("FHA") and any delegatee of 
HUD when such delegatee is acting to adminis- 
ter a HUD program. 

(i) "Low income household" shall mean any 
household with an adjusted gross income which 
does not exceed 80 percent of median income. 

(j) "Median income" shall mean the median 
gross annual income, adjusted for household 
size, for households in the statistical area, as 
published periodically by HUD. In the event that 
such income determinations are no longer pub- 
lished by HUD or are not updated for a period of 
at least 18 months, "median income" shall mean 
the median annual gross income, adjusted for 
household size, for households in San Francisco 
County, California, published periodically by the 
California Department of Housing and Commu- 
nity Development ("HCD"). In the event that 
such income determinations are no longer pub- 
lished by HCD, or are not updated for a period of 
at least 18 months, the City shall determine the 



4315 



Assisted Housing Preservation Ordinance 



Sec. 60.4. 



median income using standards and methods 
reasonably similar to those standards and meth- 
ods used by HUD or HCD when it last published 
a median income calculation. 

(k) "Moderate income household" shall mean 
any household with an adjusted gross income 
which does not exceed 95 percent of median 
income. 

(1) "Notice of intent to prepay and/or termi- 
nate" shall mean the notice the owner provides 
to the Director of Housing and to Tenant House- 
holds 18 months prior to prepayment or termi- 
nation, as set forth in Section 60,5 of this Chap- 
ter. 

(m) "Owner" shall be defined to mean the 
person, partnership, or corporation or other en- 
tity that is a party to a contract with HUD or 
other public body which provides a mortgage, 
mortgage assistance, mortgage insurance, or rent 
subsidy, or any spouse, employee, agent, partner, 
master lessee, business affiliate or associate, or 
successor in interest of such person, partnership 
or corporation that receives or demands rent for 
a subsidized rental unit. 

(n) "Person" shall mean any natural person, 
corporation, firm, partnership, association, joint 
venture, government (domestic or foreign), gov- 
ernmental or political subdivision or agency, or 
other similar entity. 

(0) "Prepayment" shall mean the prepay- 
ment, prior to the expiration of the full, original, 
stated term of the loan, of any loan secured by an 
assisted housing development which loan was 
insured or subsidized at its inception by a fed- 
eral, state or local governmental body or agency, 
including, but not limited to, loans made, in- 
sured or subsidized under the authority of the 
following provisions of federal and state law, if 
such prepayment would have the effect of termi- 
nating the use restrictions applicable to such 
assisted housing development, without substitu- 
tion of substantially similar use restrictions: 

(1) New Construction, Substantial Rehabili- 
tation, and Loan Management Set-Aside Pro- 
grams under Section 8 of the United States 
Housing Act of 1937, as amended, 42 U.S.C. 
1437(f); 



(2) Section 213 of the National Housing Act 
of 1934, as amended, 12 U.S.C. 1715e; 

(3) The Below-Market-Interest-Rate Pro- 
gram under Section 221(d)(3) of the National 
Housing Act of 1934, as amended, 12 U.S.C. 
Section 1715 1(d)(3); 

(4) Section 236 of the National Housing Act 
of 1934, as amended, 12 U.S.C Section 1715z-l. 

Prepayment shall not include the expiration 
of the full original, stated term of a loan. 

(p) "Prepayment date" shall mean the date 
prepa3mient, termination or repurchase occurs. 

(q) "Rent" shall imean the monetary consid- 
eration paid by a tenamt household for the use or 
occupancy of a unit,, and shall not include a 
utility allowance. 

(r) "Replacement unit" shall be defined to 
mean a unit which satisfies the following stan- 
dards: 

(1) Is decent, safe, sanitary and comparable 
to the converted unit, with a quality of construc- 
tion conforming to current building code stan- 
dards and adequate in number of rooms and 
living space to accommodate the tenant house- 
hold of the converted unit being replaced. 

(2) Is located in the City in an area (i) not 
subjected to unreasonably adverse environmen- 
tal conditions from either natural or manmade 
sources, (ii) not generally leas desirable than the 
converted unit with respect to public utilities, 
public and commercial facilities and neighbor- 
hood conditions, including schools and municipal 
services, and (iii) reasonably accessible to the 
present or potential places of emplojmient of the 
members of the tenant household of the con- 
verted unit being replaced; and 

(s) "Repurchase" shall mean purchase by an 
owner or its related entity of a development or 
any portion thereof, following foreclosure or trans- 
fer by deed in lieu of foreclosure, which foreclo- 
sure or transfer terminates the applicable use 
restrictions, when the building included subsi- 
dized rental units immediately prior to foreclo- 
sure or transfer, and the building was owned by 
the same owner prior to foreclosure or transfer in 
lieu of foreclosure, and new, substantially simi- 
lar use restrictions are not substituted for such 



Sec. 60.4. 



San Francisco - Administrative Code 



4316 



terminated use restrictions. For the purposes of 
this Chapter, "related entity" means any of the 
following: 

(1) A spouse, parent, child, or other indi- 
vidual related to the owner by a tie of blood, 
marriage, adoption or operation of law; 

(2) A partnership, if the owner is either a 
general or a limited partner of the partnership; 

(3) A corporation, if the owner serves on the 
board of directors of the corporation, or if the 
owner is a holder of 10 percent or more of any 
class of the outstanding stock of the corporation; 
or 

(4) Any other business entity for which the 
owner has primary or controlling authority for 
management of the business. 

(t) "Section 8" shall mean Section 8 of the 
United States Housing Act of 1937, as amended, 
42 U.S.C. Section 1437f 

(u) "Statistical area" shall mean the San 
Francisco-Oakland Metropolitan Area. 

(v) "Subsidized rental unit" shall mean any 
unit in an assisted housing development. 

(w) "Tenant household" shall mean a person 
or group of persons entitled by written or oral 
agreement, subtenancy approved by the owner, 
or sufferance, to occupy a unit to the exclusion of 
others. 

(x) "Tenant association" shall mean a group 
of tenants who have formed a nonprofit corpora- 
tion, limited equity cooperative corporation, un- 
incorporated association, or other entity or orga- 
nization whose primary purpose is the 
preservation, for current and subsequent ten- 
ants, of the affordability of the subsidized rental 
units in which tenants reside. 

(y) "Termination" shall mean terminating 
or failing to renew a rent subsidy contract with 
HUD or CHFA prior to the expiration of the full 
term of such contract, which contract may be 
unilaterally renewed by an owner, including, but 
not limited to contracts entered into pursuant to: 
(i) Section 8, which contracts are renewable by 
an owner in five-year increments during the 
contract term, but not including any contracts 
entered into pursuant to the Section 8 Existing 



Housing Program (24 C.F.R. Part 882); and (ii) 
Section 101 of the Housing and Urban Develop- 
ment Act of 1965, as amended. Termination shall 
not include the expiration of a full original, 
stated term of a rental subsidy contract, or the 
termination of the contract upon default by the 
owner. 

(z) "Unit" shall mean a residential rental 
unit, and shall include a subsidized rental unit. 

(aa) "Use restriction" shall mean any fed- 
eral, state or local statute, regulation, ordinance, 
contract, regulatory agreement, covenant, or other 
restriction which imposes a maximum limitation 
on tenant household income as a condition of 
eligibility for occupancy of a unit and (i) imposes 
a restriction on the maximum rents that could be 
charged for any of the units, or (ii) requires that 
rents for any of the units within an assisted 
housing development be reviewed by a govern- 
mental body or agency before the rents charged 
to tenant households may be increased. 

(bb) "Very low income household" shall mean 
any household with an adjusted gross income 
which does not exceed 50 percent of the median 
income. (Added by Ord. 332-90, App. 10/3/90) 

SEC. 60.5. NOTICE OF INTENT TO 
PREPAY AND/OR TERMINATE. 

(a) At least 18 months prior to the antici- 
pated date of any prepayment and/or termina- 
tion, any owner of an assisted housing develop- 
ment shall deliver to the Director of Housing and 
to each tenant household a notice of intent to 
prepay and/or terminate. 

(b) The notice shall include the following 
information: 

(1) The name and address of each owner of 
the assisted housing development. For any owner 
that is a corporation, the notice shall contain the 
names and addresses of the officers and directors 
of the corporation and of any person directly or 
indirectly holding more than 10 percent of any 
class of the outstanding stock of the corporation. 
For any owner that is a partnership or joint 
venture, the notice shall contain the names and 
addresses of the joint venturers or general and 
limited partners and shall specify the names and 



4317 



Assisted Housing Preservation Ordinance 



Sec. 60.6. 



addresses of the natural persons who are the 
principal or controlling persons of such entities. 

(2) The development's name, federal, state, 
or local program name and ID number, and 
address; 

(3) The date of intended prepayment and/or 
termination and a brief description of the owner's 
plans for the development, including any time- 
tables or deadlines for actions to be taken; 

(4) The number of subsidized rental units 
in the development subject to prepayment and/or 
termination, and the number of subsidized rental 
units occupied by tenant households with per- 
sons age 62 or older, with disabled persons, or 
with children; 

(5) The current rent schedule for the subsi- 
dized rental units; 

(6) A brief description of any contracts con- 
cerning prepayment, termination or conversion 
the owner has made with any government agency, 
tenant household residing in the development, or 
other interested person or entity; 

(7) The anticipated rent schedule after pre- 
payment an(d/or termination; 

(8) A statement signed by the owner under 
penalty of perjury certifying the date on which a 
copy of the notice was sent to the Director of 
Housing; 

(9) A statement that the Planning Commis- 
sion is required to hold a public hearing on the 
intended prepayment and/or termination within 
90 days of receipt of the notice by the Director of 
Housing; and 

(10) The telephone number of the Director 
of Housing or the designee of the Director of 
Housing to call to request additional written 
information about the owner's responsibilities 
and about the rights and options of tenant house- 
holds. 

(c) The 18-month notice period shall com- 
mence on the date the notice of intent to prepay 
and/or terminate has been received both by the 
Director of Housing and by all affected tenant 
households. The notice shall be deemed received 
five days after it is given by deposit in the United 
States mail, return receipt requested. No owner 



shall cause, either by action or inaction, the 
prepajrment and/or termination to occur prior to 
the expiration of the 18-month notice period. 

(d) Within 21 days after the owner gives the 
notice of intent to prepay and/or terminate, the 
owner shall submit to the Director of Housing a 
statement certifying the following information 
under penalty of perjury: 

(1) The owner's actual cash investment in 
the development, as defined by Section 60.8 
(i)(l)(i) below, itemized by date of investment; 

(2) The total amount of debt described in 
Section 60.8 (i)(l)(iii) below; and 

(3) The total amount of debt described in 
Section 60.8 (i)(2)(iii) below. 

(e) Upon 10 days' advance notice to the 
owner, the Director of Housing raay require the 
owner to make available for inspection and au- 
diting during normal business hours all financial 
books and records pertaining to the develop- 
ment. The Director of Housing shall make a copy 
of: (1) the notice of intent to prepay and/or 
terminate and (2) the statement required by 
Section 60.5(d) above, and shall make such cop- 
ies, together with the results of such audit, 
available to any qualified entity upon receipt of 
written request by such qualified entity. (Added 
by Ord. 332-90, App. 10/3/90) 

SEC. 60.6. PUBLIC HEARING ON 
PROPOSED PREPAYMENT AND/OR 
TERMINATION. 

(a) No later than 45 days after the date the 
Director of Housing receives the Notice of Intent 
to Prepay and/or Terminate, the Director shall 
notify the secretary of the City Planning Com- 
mission ("Commission") that such Notice was 
received and shall foirward to the Commission a 
copy of such Notice. No later than 45 days after 
the secretary's receipt of notice from the Director 
pursuant to the preceding sentence, the Plan- 
ning Commission shall hold a public hearing on 
the intended prepayment and/or termination. 
The failure of the Commission to hold a timely 
public meeting shall not prevent any person 
from exercising any of its rights with respect to 
the development. 



Sec. 60.6. 



San Francisco - Administrative Code 



4318 



(b) The Commission shall give notice of the 
date and location of the public hearing as cus- 
tomarily is given by the Commission for its 
public meetings. The notice shall contain a sum- 
mary of the owner's plan for the development 
subsequent to prepayment and/or termination, 
including the date of any proposed prepa3rment, 
termination or conversion. The Commission shall 
also mail the notice of the public hearing to any 
interested person or organization that requests 
in writing to be notified of any particular public 
hearing on a proposed prepayment and/or termi- 
nation, or of all public hearings on proposed 
prepayments and/or terminations. 

(c) At least 14 days prior to the public 
hearing, the Director of Housing shall make 
available to any interested person copies of the 
notice of intent to prepay and/or terminate and 
any other information, including copies of this 
Chapter, that concerns the responsibilities of 
owners and the rights and options of tenant 
households. 

(d) The Commission shall hear testimony 
and receive relevant documents from interested 
persons. The Commission shall consider the evi- 
dence and make specific written findings as to 
the following issues: 

(1) The proposed date of prepa5mient, ter- 
mination or conversion, if intended; 

(2) The anticipated use of the assisted hous- 
ing development subsequent to prepayment, ter- 
mination or conversion, if intended; 

(3) The anticipated numbers of units in the 
development on any proposed prepajmient date 
that will be occupied by very low, low and mod- 
erate income households; 

(4) The numbers of households in each in- 
come category identified in Subparagraph (3), 
above, that will contain, on the prepayment date, 
one or more disabled tenants, who are children 
under the age of 18 or persons over the age of 62; 

(5) For each unit occupied by a very low, low 
or moderate income household prior to the pre- 
payment date, the rent increase anticipated upon 
conversion expressed both numerically and as a 
percentage of the rent charged immediately prior 
to the conversion date; 



(6) The numbers of tenant households, by 
each category identified in Subparagraphs (3) 
and (4) above, likely to be displaced by conver- 
sion; 

(7) The vacancy rates in the City for rental 
units which are available at affordable rent to 
very low, low and moderate income households; 
and 

(8) The likely impact of prepayment and/or 
termination and subsequent conversion upon 
public and private nonprofit services. 

For the purpose of this Section 600.6(d): 

(1) "Affordable rent" shall mean the rent 
levels specified in Section 60.8(b)(2)(i) and (ii) 
below; and 

(2) A tenant household shall be presumed to 
be likely to be displaced when the rent due 
subsequent to the conversion date exceeds afford- 
able rent. 

(e) Within 30 days after the hearing, the 
Commission shall complete and forward its find- 
ings under Section 60.6(d) above to the Clerk of 
the Board of Supervisors ("Board"). Subject to 
the time required for adequate public notice and 
preparation for review, the Board shall consider 
the Commission's findings at the Board's next 
regular meeting following receipt of the findings 
by the Clerk of the Board, and shall, by resolu- 
tion, accept the findings or remand the findings 
to the Commission for revision. (Added by Ord. 
332-90, App. 10/3/90) 

SEC. 60.7. RELOCATION BENEFITS 
FOR DISPLACEMENT DUE TO 
CONVERSION. 

(a) For any very low, low, or moderate in- 
come household displaced by conversion, the 
owner shall pay to such tenant household an 
amount equal to the difference between (i) the 
annual rent or cost of ownership required for 
such household to lease or rent a unit for four 
years, or to purchase a dwelling unit, either of 
which is equivalent to a replacement unit and (ii) 
30 percent of the actual gross annual income of 
the tenant household on the prepajrment date; 



4319 



Assisted Housing Preservation Ordinance 



Sec. 60.8. 



provided, however, that in no event shall the 
amount calculated under this Section 60.7(a) 
exceed $5,250. 

(b) For the purpose of this Section 60.7, a 
tenant household is "displaced" by conversion 
when, after the notice of intent to prepay and/or 
terminate is given, the tenant household re- 
ceives a notice to quit, or vacates the unit due to 
inability to pay the increased rent due on the 
conversion date, and the facts constituting the 
grounds for eviction stated in Section 37.9(a)(2), 
(3), (4), (6), or (7) of the San Francisco Adminis- 
trative Code, or any other just cause cognizable 
under federal or state regulation applicable to 
the development prior to the prepajnnent date, 
do not exist to justify eviction. A tenant house- 
hold shall be presumed to be unable to pay the 
rent due on the conversion date if such rent 
exceeds the rent specified in Section 60.8(b)(2)(ii). 
The tenant household shall not be considered to 
be displaced by conversion if the tenant house- 
hold is evicted for nonpajonent of the rent due 
prior to the conversion date. 

(c) A tenant household displaced by conver- 
sion shall be entitled to receive the amount due 
under Section 60.7(a) prior to but as a condition 
of, vacating the unit. 

(d) The requirement contained in Section 
60.7(a) above shall not apply to any assisted 
housing development which is sold or otherwise 
transferred to a qualified entity pursuant to 
Section 60.8 below, or if the owner provides to the 
tenant household, prior to the conversion date, a 
replacement unit which is immediately available 
for occupancy (Added by Ord. 332-90, App. 10/3/ 
90) 

SEC. 60.8. RIGHT OF QUALIFIED 
ENTITIES TO RECEIVE OFFER FOR 
PURCHASE OF AN ASSISTED HOUSING 
DEVELOPMENT. 

(a) Any owner of an assisted housing devel- 
opment required by this Chapter to give notice of 
intent to prepay and/or terminate, or to give the 
notice of expiration required by Section 60.9, 
below, shall not sell or otherwise transfer the 
development, or any portion thereof, unless the 



owner proposing such sale or transfer shall first 
have provided qualified entities the opportunity 
as described in this Section 60.8 to purchase the 
development. 

(b) A "qualified entity" within the meaning 
of this Chapter means an entity that (x) is a 
government entity; or (y) is described in Section 
501(c)(3) and is exempt from taxation under 
Section 501(a) of the Internal Revenue Code of 
1986, and is (A) the tenant association of the 
development, if any, (B) a nonprofit public ben- 
efit corporation or (C) a limited partnership with 
a nonprofit public benefit corporation as general 
partner, and which: 

(1) Has demonstrated, to the reasonable 
satisfaction of the Director of Housing, the capa- 
bility, either by itself or through a management 
agent, to manage the development for the 
development's remaining useful life; 

(2) Agrees, in a written certification to the 
owner and to the Director of Housing and through 
the recording of the document described in Sec- 
tion 60.8(n), to obligate itself and any successors 
in interest to maintain the assisted housing 
development, for its remaining useful life, for 
occupancy either in (x) the same percentage of 
very low, low and moderate income households 
that occupied the units on the date the owner 
gave notice of intent to prepay and/or terminate 
or (y) the percentages specified in existing use 
restrictions, whichever jdelds lower rents, at 
monthly rents not exceeding the lower of: 

(i) The rents specified in the existing use 
restrictions; or 

(ii) (A) The greater of V12 of ( 1) 30 percent of 
40 percent of median income, or (2) 30 percent of 
actual tenant household income, less a utility 
allowance, for each unit occupied by a very low 
income household; and (B) the greater of V12 of 

(1) 30 percent of 70 percent of median income, or 

(2) 30 percent of actual tenant household income, 
less a utility allowance, for each unit occupied by 
a low income household; and (C) the greater of 
V12 of (1) 30 percent of 90 percent of median 
income, or (2) 30 percent of actual tenant house- 
hold income, less a utility allov/ance, for each 
unit occupied by a moderate income household; 



Sec. 60.8. 



San Francisco - Administrative Code 



4320 



(3) Has demonstrated, to the reasonable 
satisfaction of the Director of Housing, a commit- 
ment to seek, dihgently and in good faith, any 
additional subsidies that may become available 
to increase the percentage of units available for 
occupancy by very low income households at a 
rent not exceeding the amount specified in Sec- 
tion 60.8(b)(2)(ii) above; 

(4) Does not have among its directors, gen- 
eral partners, shareholders or other persons with 
a financial interest in the entity, a majority of 
persons who have converted subsidized rental 
units or have given a notice of intent to prepay 
and/or terminate; and 

(5) Is not a related entity of the owner. 

(c) Any person may petition the Director of 
Housing to determine whether a person claiming 
to be a qualified entity is a qualified entity. Upon 
written request of the Director of Housing, any 
person claiming to be a qualified entity shall 
submit to the Director of Housing, within 30 
days of receipt of such request, written documen- 
tation supporting the conclusion that that per- 
son is a qualified entity. Such documentation 
shall include a statement by an authorized of- 
ficer of the entity attesting under penalty of 
perjury to the accuracy and completeness of the 
facts stated in such documentation. Upon receipt 
the Director of Housing shall make such docu- 
mentation available for public inspection and 
copying upon written request by any interested 
person. The Director of Housing shall promptly 
make a determination after receiving all rel- 
evant information and shall support the deter- 
mination with public written findings. The de- 
termination of the Director may be appealed to 
the Appeals Board. 

(d) Any owner of an assisted housing devel- 
opment who is required to give notice of intent to 
prepay and/or terminate, or to give the notice of 
expiration required by Section 60.9, shall not sell 
or otherwise transfer an assisted housing devel- 
opment, or any portion thereof, without giving, 
at least 14 months prior to the date of such sale 
or transfer, notice of intention to sell or transfer 
the development or any portion thereof ("notice 
of intent to sell"), to the Director of Housing and 



to any Qualified Entity which requests in writ- 
ing such notice from the owner. The notice of 
intent to sell shall be signed by the owner under 
penalty of perjury and given by deposit in the 
United States Mail, first class, certified, return 
receipt requested and posted in a conspicuous 
place in the common area of the development. 

(e) The notice of intent to sell shall contain 
all of the following: 

(1) The intended date of sale or transfer; 

(2) The terms of assumable or seller take- 
back financing, if any, including, but not limited 
to, the name and address of the lender, the 
principal amount of the loan, the interest rate, 
repajrment provisions, the date the loan is due, 
and the priority of the lien of any instrument 
securing the loan; the terms of an applicable 
subsidy contract, if any; and proposed improve- 
ments to the property to be made by the owner in 
connection with the sale or transfer, if any; 

(3) A statement that the development or 
portion thereof is available for purchase by or 
transfer to a qualified entity; 

(4) A statement that the owner will make 
available to any qualified entity, within 15 days 
of receiving a written request therefor, itemized 
lists of monthly operating expenses, capital im- 
provements as determined by the owner made 
within each of the two preceding calendar years, 
the amount of project reserves, and copies of the 
two most recent financial and physical inspec- 
tion reports on the development, if any, filed with 
federal, state, or local agencies; and 

(5) A copy of the notice of intent to prepay 
and/or terminate and a statement, signed by the 
owner under penalty of perjury, of the date the 
notice of intent to prepay and/or terminate was 
given. 

(f) If, prior to the time by which the owner 
must give the notice of intent to sell, the owner 
already has received from a qualified entity an 
offer to purchase, as defined in Section 60.8(g) 
below, and the owner has accepted such offer, the 
owner shall not be required to give the notice of 
intent to sell; provided, however, that the owner 
shall be required to submit to the Director of 
Housing, and to post in a conspicuous place in 



4321 



Assisted Housing Preservation Ordinance 



Sec. 60.8. 



the assisted housing development, a certification 
made under penalty of perjury that the owner 
has received and accepted an offer to purchase 
from a qualified entity. Such certification shall 
contain a statement of the terms of the sale or 
transfer. 

(g) Any qualified entity which desires to 
acquire the development shall send to the Direc- 
tor of Housing and to the owner by United States 
mail, first class, certified, return receipt re- 
quested, an offer to purchase. To be effective for 
the purpose of Section 60.8(i) below, such offer to 
purchase shall be received by the owner no later 
than eight months prior to the conversion date. 
The offer to purchase shall contain the following 
information: 

(1) The name, address and form of organi- 
zation of the qualified entity; 

(2) The names and titles of the officers, 
directors, and similar persons in control of and 
principal investors in the qualified entity; 

(3) A statement, signed by an authorized 
officer under penalty of perjury, that the offeror 
is a qualified entity within the meaning of this 
Chapter; and 

(4) The terms of the offer to purchase, in- 
cluding the purchase price, the proposed meth- 
ods and terms of financing, the proposed date for 
close of escrow, and any other terms of purchase, 
including the financing and mechanisms by which 
the qualified entity will maintain the physical 
integrity and the affordability of the develop- 
ment. 

(h) Any owner who is required to give notice 
of intent to prepay and/or terminate, prior to the 
date eight months prior to the proposed conver- 
sion date, shall not sell or transfer, or enter into 
an agreement to sell or transfer, an assisted 
housing development or any portion thereof to 
any entity other than a qualified entity. If an 
owner receives an offer to purchase from a quali- 
fied entity, the owner shall accept the offer if the 
purchase price offered is equal to or exceeds the 
fair return price defined in Section 60.8(i) below 
and the remaining terms of the offer to purchase 
are commercially reasonable. If more than one 
qualified entity submits such an offer to pur- 



chase, the owner may accept any such offer; 
provided, however, that the owner shall be re- 
quired to accept an offer to purchase by a local 
qualified entity over a competing offer made by a 
nonlocal qualified entity. For the purpose of this 
Chapter, a qualified entity is "local" if it is a 
tenant's association of the development or if its 
principal office is located within the City and 
County of San Francisco. 

(i) For the purpose of this Chapter, the "fair 
return price" shall be the greater of the following 
two alternative formulas specified in this Section 
60.8(i); provided, however, that the fair return 
price shall in no event exceed the value of the 
development appraised by standard appraisal 
methods for the highest and best use, taking into 
account applicable legal restrictions governing 
the use of the development. The fair return price 
shall equal the greater of (1) or (2) below: 

(1) The sum of the following amounts: 

(i) The owner's actual cash investment in 
the development, adjusted for inflation by mul- 
tiplying the historic dollar amount of the actual 
cash investment by the Consumer Price Index as 
published by the United States Department of 
Labor for All Urban Consumers in the Statistical 
Area, for each year between the date of the 
investment and the date on which the offer 
contained in the offer to purchase is proposed to 
close ("adjusted actual cash investment"). Actual 
cash investment shall equal the sum of the cash 
required for closing the owner's purchase and 
any cash subsequently invested by the owner in 
improvements to the development. Actual cash 
investment shall not include any amount ex- 
pended for capital improvements if such expen- 
diture was paid with funds from a contingency 
reserve or sinking fund account of the develop- 
ment. For the purpose of this Chcipter, a "sinking 
fund" is any interest-bearing account into which 
the interest earned is required to be deposited, 
and from which withdrawal of funds is prohib- 
ited until the fund maturity date; plus 

(ii) A return on the value of the owner's 
adjusted actual cash investment calculated as 
follows: the sum of a 10 percent annual return on 
actual total cash investment for the 20-year 



Sec. 60.8. 



San Francisco - Administrative Code 



4322 



period following the proposed prepayment date 
increased each year by an annual four-percent 
inflation rate, which sum shall be discounted to 
present value by a discount rate of 10 percent; 
plus 

(iii) The total original principal amount of 
debt, the proceeds of which were used to finance 
the cost of constructing the development or for 
subsequent improvements to the development, 
and which debt is secured by the development at 
the time of sale, but not including any debt 
already incurred for prior purchase of existing 
improvements or for prior seller take-back financ- 
ing or for refinancing of existing debt; plus 

(iv) The federal and state capital gains tax 
liability of the owner actually paid as a result of 
the sale of the development pursuant to this 
Chapter, provided that the owner and the quali- 
fied entity shall use good-faith efforts and coop- 
erate with each other to minimize the amount of 
federal and state capital gains taxes to the 
extent legally permitted. 

(2) The sum of the following amounts: 

(i) The owner's adjusted actual cash invest- 
ment in the development; plus 

(ii) A return on the owner's adjusted actual 
cash investment in the development calculated 
as follows: an amount equal to 10 percent of 
adjusted actual cash investment for each year 
that the owner owned the development, reduced 
by the amount of the annual dividend permitted 
by any applicable regulatory agreement or other 
covenant or condition of public subsidy and re- 
ceived by the owner, and reduced by any loan 
proceeds received subsequent to the owner's pur- 
chase, which loan proceeds do not meet the 
criteria set forth in Section 60.8(i)(l)(i) above. 
The number calculated pursuant to this Section 
60.8(i)(2)(ii) shall not be less than zero; plus 

(iii) The total amount of debt secured by the 
development, or which the owner is obligated to 
repay from the cash flow generated from opera- 
tion of the development, or which is secured 
against a limited partnership interest or shares 
of stock in any owner for which the development 
is the sole significant asset, regardless of the use 
of the proceeds of such debt; provided, however. 



that such debt shall not include any debt in- 
curred between the effective date of any appli- 
cable amendments to the Internal Revenue Code 
contained in the Economic Recovery Tax Act of 
1981 (P.L. 97-34) and the effective date of any 
applicable amendments to the Internal Revenue 
Code contained in the Tax Reform Act of 1986 
(RL. 99-514) if either the debt is not required to 
be repaid directly from cash flow generated by 
operation of the development, or the failure to 
repay the debt will not give rise to the right to 
foreclose on the real property comprising the 
development; plus 

(iv) The federal and state capital gains tax 
liability of the owner actually paid as a result of 
the sale of the development pursuant to this 
Chapter, provided that the owner and the quali- 
fied entity shall use good-faith efforts and coop- 
erate with each other to minimize such taxes to 
the extent legally permitted. 

(j) If the owner accepts an offer to purchase 
from a qualified entity pursuant to Section 60.8(h) 
above, an agreement for purchase and sale of the 
development shall be negotiated in good faith 
between the owner and the qualified entity, and 
conditioned upon the reasonable amount of time 
needed to obtain the necessary government ap- 
provals and any necessary financing, and shall 
include the following: 

(1) An agreement by the owner to provide 
the qualified entity with all existing loan docu- 
ments and any other relevant documents relat- 
ing to operation of the development not already 
provided to the purchasing qualified entity, in- 
cluding but not limited to, regulatory agree- 
ments containing any use restrictions, loan agree- 
ments, promissory notes, and deeds of trust, 
within 15 days from the date of the signing of the 
purchase agreement by all the parties; 

(2) An agreement by the qualified entity to 
make an earnest money deposit or deposits, in a 
total amount not to exceed one percent of the 
purchase price, within five days of executing the 
agreement for purchase and sale, which, to- 
gether with accrued interest shall be credited 
against the purchase price at the close of escrow. 
The deposit shall be refundable only if the quali- 



4323 



Assisted Housing Preservation Ordinance 



Sec. 60.9. 



fied entity, after a diligent, good-faith effort, fails 
to remove all inspection and financing contingen- 
cies within a reasonable time; and 

(3) A statement that the terms and condi- 
tions in the purchase agreement, including, but 
not limited to, the timetables specified in this 
subsection, may be extended or otherwise amended 
only by the mutual consent of the owner and the 
qualified entity. 

(k) The owner shall no longer be subject to 
the requirements of this Section 60.8 upon sub- 
mission of a written certification to the Director 
of Housing, signed by the owner under penalty of 
perjury, that any of the following has occurred: 

(1) The owner met all notice and informa- 
tion requirements pursuant to this Chapter and 
no offer to purchase was received from a quali- 
fied entity within the applicable time period that 
the owner was required by Section 60.8(h) above 
to accept; or 

(2) Despite good-faith negotiations between 
the owner and the qualified entity, the parties 
were unable to agree on the material provisions 
of the purchase agreement, and no other quali- 
fied entity made a timely offer to purchase that 
the owner was required by this Chapter to ac- 
cept; or 

(3) A qualified entity that executed a pur- 
chase agreement (i) terminated the agreement or 
was unable to meet the terms of the agreement, 
(ii) that the owner exercised due diligence in 
carrying out the conditions of the purchase agree- 
ment, and (iii) that no other qualified entity 
made an offer to purchase that the owner was 
required by this Chapter to accept. 

(1) An owner, at any time prior to the con- 
version date, may decide not to prepay, termi- 
nate, sell or otherwise transfer the development 
and may withdraw the notice of intention to sell, 
subject to the terms of any accepted offer to 
purchase or executed purchase and sale agree- 
ment, and to the offeror's existing statutory and 
common law remedies. In such event, the owner 
shall give written notice of such decision by 
United States Mail, first class, certified, return 
receipt requested, to the Director of Housing, to 
all tenant households in the assisted housing 



development, and to any offeror qualified entity. 
However, at any time that the owner again 
decides to sell, or otherwise transfer the devel- 
opment or any portion thereof, the 14-month 
notice period and the other requirements of this 
Section 60.8 shall apply to such sale or transfer. 

(m) Prior to the close of escrow, an owner 
selling or transferring a development, or any 
portion thereof, to any purchaser, shall certify 
under penalty of perjury that the owner has 
complied with all provisions of this Chapter. A 
copy of the certification shall be sent to the 
Director of Housing by United States Mail, first 
class, certified, return receipt requested, 10 days 
prior to close of escrow. The certification shall be 
recorded and shall contain a legail description of 
the property on which the development is located 
and, to the extent consistent with the practices of 
the Office of the Recorder, shall be indexed to the 
name of the owner as grantor. 

(n) As a condition precedent to the acquisi- 
tion of any development by a qualified entity 
pursuant to this Chapter, the qualified entity 
shall enter into a regulatory ai^eement, deed 
restriction or similar agreement, in form and 
substance satisfactory to the Director of Hous- 
ing, which agreement shall be recorded in the 
official records of San Francisco County to en- 
sure that the covenants of the qualified entity 
made to comply with this Chapter shall run with 
the land and be binding on the qualified entity 
and its successors and assigns. The qualified 
entity shall submit to the owner and the Director 
of Housing, concurrently with the delivery of an 
offer to purchase under Section 60.8(g), its pro- 
posed form of regulatory agreement or other 
enforcement mechanism for review by the Direc- 
tor of Housing. (Added by Ord. 332-90, App. 
10/3/90) 

SEC. 60.9. EXPIRATION OF RENT 
SUBSIDY CONTRACTS; DISCLOSURE. 

(a) At least 12 months prior to the expira- 
tion of the full term of any rent subsidy contract 
described in Section 60.4 above, the owner shall 
give notice by United States Mail, first class, 
certified, return receipt requested, of such im- 
pending termination to the Director of Housing, 



Sec. 60.9. 



San Francisco - Administrative Code 



4324 



Director of City Planning, and to all tenant 
households in the development. Such notice shall 
contain the information required by Section 
60.5(b)(1) and (2), and the following information: 

(1) The date of expiration of any such rent 
subsidy contract and a brief description of the 
owner's plans for the development subsequent to 
expiration; 

(2) The number of subsidized rental units 
in the development prior to expiration of any 
such rent subsidy contract, and the number of 
subsidized rental units occupied by tenant house- 
holds with persons age 62 or older, with disabled 
persons, and with persons under age 18; 

(3) The current rent schedule for the devel- 
opment; 

(4) A brief description of any contracts con- 
cerning expiration the owner has made with any 
governmental agency, tenant household residing 
in the development, or other interested person; 

(5) The anticipated rent schedule after ex- 
piration of such rent subsidy contract; and 

(6) A statement by the owner signed under 
penalty of perjury certifying the accuracy of the 
notice as of the date the notice was given. 

(b) No later than 90 days after the receipt of 
the notice specified in Section 60.9(a) above, the 
Director of Planning shall request that the Plan- 
ning Commission hold a hearing on the impend- 
ing expiration to determine: (i) what action the 
City can take to prevent the loss of the rent 
subsidy for the affected units; and (ii) whether 
the owner has initiated or is likely to initiate a 
diligent, good-faith effort to obtain a renewal or 
extension of the expiring contract. The Director 
of Planning shall give notice of such hearing to 
the owner, the affected tenant households, the 
San Francisco Housing Authority ("SFHA"), the 
regional office of HUD, and any other person or 
entity who submits a written request for such 
notice to the Director of Housing or Director of 
Planning. 

(c) If an assisted housing development con- 
tains subsidized rental units subsidized under 
more than one project-based rent subsidy con- 
tract, and all such rent subsidy contracts for the 
assisted housing development do not expire on 



the same date, as part of any offer to a tenant 
household already residing in the development 
to permit such tenant household to move into a 
different unit in the development, the owner 
shall disclose to such tenant household in writ- 
ing the expiration dates for the rent subsidy 
contracts applicable to both units. The owner 
shall also send to the Director of Housing and to 
the Executive Director of SFHA, by United States 
mail, return receipt requested, a copy of such 
offer and such disclosure. (Added by Ord. 332-90, 
App. 10/3/90) 

SEC. 60.10. ADMINISTRATIVE RELIEF. 

(a) An owner or qualified entity may peti- 
tion directly the Housing Preservation Appeals 
Board ("Appeals Board"), in the same manner as 
the procedure for appeals specified in Section 
60.12(d) through (h) below, for relief from strict 
compliance with the provisions of this Chapter. 
Such relief shall be granted only as specified in 
this Section 60.10, and only upon a finding by the 
Appeals Board, after a hearing, that the owner 
or qualified entity has shown by a preponder- 
ance of the evidence that relief is warranted. 

(b) An owner may be relieved of the obliga- 
tion to comply with the 18-month notice require- 
ment if imposed by Section 60.5 on the following 
grounds: 

(1) Due to the date this Chapter was en- 
acted, compliance with an applicable provision of 
federal or state law renders the owner unable to 
comply both with such federal or State law, and 
with the 18-month notice requirement; or 

(2) Compliance with the 18-month notice 
requirement would subject the owner's interest 
in the development to substantial danger of 
extinguishment by foreclosure or sale in lieu of 
foreclosure. 

Any order of relief entered pursuant to this 
Section 60.10(b) shall reduce the IS-month no- 
tice period only to the extent necessary to avoid 
the situations described in Section 60.10(b)(1) 
and (2) above. 



4325 



Assisted Housing Preservation Ordinance 



Sec. 60.10. 



(c) An owner may be relieved of the obliga- 
tion to comply with the requirement to pay 
relocation bcinefits, imposed by Section 60.7, on 
the following grounds: 

(1) Payment of the full amount of such 
benefits will render the owner insolvent. For the 
purpose of this Section 60.10(c), "insolvent" shall 
mean that the value of the liabilities of the owner 
exceeds the value of the owner's assets. 

Any order of relief entered pursuant to this 
Section 60.10(c) shall reduce the amount of relo- 
cation benefits due only to the extent necessary 
to avoid rendering the owner insolvent. 

(d) An owner may petition on the Appeals 
Board for an adjustment in the method of calcu- 
lating the fair return price. Such relief shall be 
granted only to the extent necessary to avoid a 
result which is confiscatory. For the purpose of 
this chapter, "confiscatory" shall mean that the 
owner does not receive a fair return on actual 
cash investment or adjusted actual cash invest- 
ment as a result of sale to a qualified entity 
pursuant to Section 60.8 above. Any order of 
relief pursuant to this Section 60.10(d) shall 
increase the fair return price only to the extent 
necessary to avoid a confiscatory result. 

(e) An owner may petition the Appeals Board 
for reduction of the 14-month notice requirement 
specified by Section 60.8(e). Such reduction may 
be granted on the following grounds: 

(1) Due to the date this Chapter was en- 
acted, compliance with applicable provision of 
federal or state law renders the owner unable to 
comply both with such federal or state law, and 
with the 14-month notice requirement; or 

(2) Compliance with the 14-month notice 
requirement would subject the owner's interest 
in the development to substantial danger of 
extinguishment by foreclosure or sale in lieu of 
foreclosure. 

Any order of relief pursuant to this Section 
60.10(e) shall reduce the 14-month notice period 
only to the extent necessary to avoid the situa- 
tions described in Section 60.10(e)(1) and (2) 
above. 



(f) A qualified entity may petition the Ap- 
peals Board for relief from the requirements of 
Section 60.8(b)(2) if maintaining the rents at the 
levels specified in Section 60.8(b)(2) renders an 
assisted housing development not financially fea- 
sible because the development's operating rev- 
enue will not equal or exceed the sum of operat- 
ing expenses. A qualified entity purchaser shall 
be entitled to remove one or more units from the 
rent and occupancy requirements as the Appeals 
BoEird finds is necessary for the development to 
become economically feasible; provided, how- 
ever, that once the development is again economi- 
cally feasible, the purchasing qualified entity 
shall cause the next available units to be units 
subject to the rent and occupancy requirements 
until achieving the number and mix of restricted 
units in the development required by Section 
60.8(b)(2) 

For the purpose of this Section 60.10(f), "op- 
erating revenues" shall include rents, subsidy 
paj'Tnents received on behalf of tenant house- 
holds, interest on contingency reserve or other 
reserve funds not designated to be a sinking 
fund, and receipts from operation of laundry, 
parking or other services. "Operating expenses" 
shall include all costs and expenses related to 
operation of the development, including debt 
service on any loans required to be paid cur- 
rently, but not including any debt incurred for 
purchase of the development pursuant to this 
Chapter unless the proceeds of such debt were 
necessary to pay the fair return price, or were 
used to pay the cost of capital improvements or 
rehabilitation necessary to bring the develop- 
ment into compliance with applicable building, 
electrical, fire, plumbing, and similar code stan- 
dards. 

(g) Any owner may petition the Appeals 
Board for a reduction in the 12-month notice 
requirement specified by Section 60.9(a). Such 
reduction shall be granted on the following 
grounds: 

(1) Due to the date this Chapter was en- 
acted, compliance with applicable portions of 
federal or state law renders the owner unable to 
comply both with such federal or State law, and 
with the 12-month notice requirement; or 



Sec. 60.10. 



San Francisco - Administrative Code 



4326 



(2) Compliance with the 12-month notice 
requirement would subject the owner's interest 
in the development to substantial danger of 
extinguishment by foreclosure or sale in lieu of 
foreclosure. 

Any order of relief pursuant to this Section 
60.10(g) shall reduce the 12-month notice period 
only to the extent necessary to avoid the situa- 
tions described in Section 60.10(g)(1) and (2) 
above. (Added by Ord. 332-90, App. 10/3/90) 

SEC. 60.11. CIVIL ACTIONS. 

(a) Whenever an owner (i) fails to give the 
notice of intent to prepay and/or terminate as 
provided in this Chapter; (ii) fails to comply with 
the provisions of this Chapter concerning pur- 
chase by a qualified entity; (iii) attempts to 
convert or converts subsidized rental units in 
violation of this Chapter; or (iv) otherwise fails to 
comply with the provisions of this Chapter, the 
City, any tenant household of the affected devel- 
opment, any affected qualified entity, or the 
tenant association of the development may insti- 
tute a civil proceeding for injunctive relief to 
restrain the owner from such violation and/or 
money damages, or for any other remedy avail- 
able at law or in equity. 

(b) Upon proof that the owner has willfully 
or in bad faith violated any provision of this 
Chapter, any affected tenant household shall 
receive a judgment of treble the tenant household's 
actual damages. 

(c) In any action in which the City is a 
party, which action is brought to enforce the 
provisions of this chapter, upon proof that the 
owner willfully or in bad faith converted a sub- 
sidized rental unit, such owner shall be required 
to pay to the City a sum at least equal to the cost 
of constructing or acquiring a replacement unit 
for each subsidized rental unit unlawfully con- 
verted, including, for construction, the per-unit 
cost of land acquisition. Any money received 
under this Section 60.11(c) shall be used for the 
development or preservation of housing units 
affordable to and to be occupied by very low and 
low income households. 



(d) The prevailing party in any civil action 
brought under this Section 60.11 shall be en- 
titled to recover reasonable attorney's fees and 
costs. Reasonable fees of attorneys of the City's 
Office of City Attorney shall be based on the fees 
regularly charged by private attorneys with an 
equivalent number of years of professional expe- 
rience in the subject matter areas of the law for 
which the City Attorney's services were rendered 
and who practice in the City in law firms with 
approximately the same number of attorneys as 
employed by the Office of City Attorney. (Added 
by Ord. 332-90, App. 10/3/90) 

SEC. 60.12. CIVIL PENALTIES. 

(a) Any owner who negligently or intention- 
ally violates any provision of this Chapter shall 
be liable for a civil penalty not to exceed $5,000 
for each separate violation. Such violations shall 
include, but are not limited to, the making of a 
false statement or representation in any notice 
or other document required by this Chapter. 

(b) Any interested person may petition the 
Director of Housing to investigate an alleged 
violation of this Chapter. Upon receipt of such 
petition, or upon his or her own motion, the 
Director of Housing shall give the owner 21 days' 
written notice by United States Mail, first class, 
certified, return receipt requested, of the date, 
time and location of a hearing before the Director 
of Housing, and the nature of the alleged viola- 
tion. The Director of Housing shall hear the 
evidence and shall determine whether any viola- 
tion was negligent or intentional. The Director of 
Housing shall issue a written decision with find- 
ings in support of the decision that state the 
nature of any violations and any appropriate 
penalties. 

(c) The owner or any other party to the 
hearing may appeal the decision of the Director 
of Housing to the Housing Preservation Appeals 
Board ("Appeals Board") by filing with the Ap- 
peals Board a written notice of appeal within 30 
days of the date of the decision by the Director of 
Housing. The notice of appeal shall state the 
grounds for objection to the decision of the Direc- 
tor of Housing. 



4327 Assisted Housing Preservation Ordinance Sec. 60.14. 



(d) The Appeals Board shall hold a public 
hearing on the appeal within 45 days of the filing 
of the notice of appeal and shall decide whether 
to reverse or affirm the decision of the Director of 
Housing within 15 days of the hearing. The 
Appeals Board shall give the owner and any 
person requesting notice at least 14 days' notice 
of the date, time and location of the hearing. 

(e) The Appeals Board shall adopt written 
findings in support of its decision. 

(f) The decision of the Appeals Board shall 
be a final order reviewable by any court of 
competent jurisdiction. 

(g) The Appeals Board shall adopt rules 
governing conduct of its hearings. Such rules 
shall provide that parties shall have the right to 
be present, to be represented by counsel, to 
present evidence and to cross-examine wit- 
nesses. 

(h) The Appeals Board shall have three 
members appointed by the Mayor. 

(i) Any penalties collected pursuant to this 
Section 60.12 shall be used as provided in Sec- 
tion 60.11(c) above. (Added by Ord. 332-90, App. 
10/3/90) 

SEC. 60.13. RULES AND REGULATIONS. 

The Mayor is authorized to promulgate any 
rules or regulations necessary or appropriate to 
carry out the purposes and requirements of this 
ordinance. (Added by Ord. 332-90, App. 10/3/90) 

SEC. 60.14. SEVERABILITY. 

If any provision or clause of this Chapter, or 
the application thereof to any person or circum- 
stance, is held to be unconstitutional or to be 
otherwise invalid by any court of competent 
jurisdiction, such invalidity shall not affect other 
chapter provisions. Clauses of this Chapter are 
declared to be severable. (Added by Ord. 332-90, 
App. 10/3/90) 



[The next page is 4355] 



San Francisco - Administrative Code 



[INTENTIONALLY LEFT BLANK] 



CHAPTER 61: WATERFRONT LAND USE 



Sec. 61.1. Findings and Declaration of 

Policy. 
Sec. 61.2. Land Use Planning Process. 

Sec. 61.3. Maritime Land Uses. 

Sec. 61.4. Acceptable Non-Maritime Land 

Uses. 
Sec. 61.5. Unacceptable Non-Maritime 

Land Uses. 
Sec. 61.6. Definitions. 

Sec. 61.7. Implementation. 

Sec. 61.8. Severability. 

Sec. 61.9. Amendment and Repeal. 

Sec. 61.10. Chaptering of this Ordinance. 

SEC. 61.1. FINDINGS AND 
DECLARATION OF POLICY. 

The people of the City and County of San 
Francisco find and declare: 

(a) Whereas, the waterfront of San Fran- 
cisco is an irreplaceable public resource of the 
highest value; 

(b) Whereas, the most beneficial and appro- 
priate use of the waterfront is for purposes 
related to and dependent on their proximity to 
San Francisco Bay and the Pacific Ocean, such 
as maritime uses, public access to, and restora- 
tion of, San Francisco Bay; 

(c) Whereas, San Francisco holds the water- 
front in trust for the People of California; 

(d) Whereas, maritime uses, public access 
to, and restoration of San Francisco Bay serve 
San Francisco residents, and provide significant 
economic, social and environmental benefits to 
San Francisco and its residents, including a 
diversity of employment opportunities and bet- 
ter access to a healthier San Francisco Bay; 

(e) Whereas, the waterfront contains struc- 
tures of historical and architectural importance; 

(f) Whereas, it is poor planning to approve 
waterfront land uses on an ad hoc basis, rather 
than as part of a comprehensive waterfront land 
use plan; 



(g) Whereas, it is in the interest of San 
Frcincisco to develop a strong and economically 
vital waterfront with adequate public access to 
and restoration of San Francisco Bay; and 

(h) Whereas, changing conditions in the mari- 
time industry such as deeper draft vessels and 
increased awareness of the negative environmen- 
tal impacts of dredging and dredge-spoil dump- 
ing indicate that cargo handling at the Port of 
San Francisco could increase dramatically; 

Therefore the people of San Francisco declare 
that it is the policy of the City and County of San 
Freincisco that: 

(a) The waterfront be reserved for maritime 
uses, public access, and projects which aid in the 
preservation and restoration of the environment; 

(b) Where such land uses are infeasible or 
impossible, only acceptable non-maritime land 
uses as set forth in this ordinance shall be 
allowed; 

(c) A waterfront land use plan shall be pre- 
pared (as set forth in Section 61.2 of this ordi- 
nance) to further define acceptable and unaccept- 
able non-maritime land uses and to assign land 
uses for specific waterfront parcels. (Added by 
Proposition H, 11/6/90) 



SEC. 61.2. 
PROCESS. 



LAND USE PLAlNfNING 



(a) Upon adoption of this initiative, the Board 
of Supervisors shall within 30 days request the 
Port Commission to prepare a "Waterfront Use 
Land Plan" which is consistent with the terms of 
this initiative for waterfront lands as defined by 
this ordinance. Should the Port Commission not 
agree to this request within 30 dgiys of the Board 
of Supervisors request, the Board of Supervisors 
shall have 30 days to designate a different City 
agency or department to prepare the "Waterfront 
Land Use Plan." 



4355 



Sec. 61.2. 



San Francisco - Administrative Code 



4356 



(b) The agency drafting the "Waterfront Land 
Use Plan" shall consult the City Planning Com- 
mission to ensure development of a plan consis- 
tent with the City's Master Plan. The final plan 
and any subsequent amendments thereto shall 
be subject to a public hearing conducted by the 
City Planning Commission to ensure consistency 
between the plan and the City's Master Plan. 

(c) The "Waterfront Land Use Plan" shall 
define land uses in terms of the following catego- 
ries: 

(1) Maritime land uses; 

(2) Acceptable non-maritime land uses; and 

(3) Unacceptable non-maritime land uses. 

Land uses included in these categories which 
are not part of the initial ordinance shall be 
added to Sections 61.3 through 61.5 of this 
ordinance as appropriate. No deletions from Sec- 
tions 61.3 through 61.5 shall be allowed unless 
approved by the voters of San Francisco; 

(d) No City agency or officer may take, or 
permit to be taken, any action to permit the new 
development of any non-maritime land use (ex- 
cept those land uses set forth in Section 61.4 
below) on the waterfront until the "Waterfront 
Land Use Plan" has been completed. Non- 
maritime land uses existing, or which have all 
their necessary permits, as of January 1, 1990, 
shall be exempt from this limitation. Non- 
maritime land uses included in the following 
projects shall be exempt from this limitation 
provided that the projects shall be subject to all 
other applicable laws and regulations and that 
hotels are not permitted: 

(1) A project to restore two buildings on the 
San Francisco waterfront that are listed on the 
federal National Registrar of Historic Places as 
of January 1, 1994, specifically the Ferry Build- 
ing and the Agricultural Building, while continu- 
ing the role of the Ferry Building area as a 
transportation center, and to improve the adja- 
cent pier areas including existing structures, up 
to but not including any portion of Pier 1 on the 
north and extending to include the pier area 
adjoining and south of the Agricultural Building, 
and 



(2) A project to improve the public boat 
launch and dock facility near Pier 52 if the 
non-maritime land use is limited to a retail and 
food service use of approximately 3,000 square 
feet to serve the recreational boating and water 
use community. 

(3) This provision shall not be applicable to 
any new development within the Northeast China 
Basin Special Use District. 

(4) This provision shall not be applicable to 
any new development within the Candlestick 
Point Special Use District. 

(e) The "Waterfront Land Use Plan" shall 
be reviewed by the agency which prepared it or 
by such other agency designated by the Board of 
Supervisors at a minimum of every five years, 
with a view toward making any necessary amend- 
ments consistent with this initiative. 

(f) The "Waterfront Land Use Plan" shall be 
prepared with the maximum feasible public in- 
put. (Added by Proposition H, 11/6/90; amended 
by Proposition P, 11/8/94; Proposition B, 3/26/96; 
Proposition F, 6/3/97) 

SEC. 61.3. MARITIME LAND USES. 

Maritime land uses include but are not lim- 
ited to: 

(a) Maritime cargo handling and storage 
facilities; 

(b) Ship repair facilities; 

(c) Fish processing facilities; 

(d) Marinas and boat launch ramps; 

(e) Ferryboat terminals; 

(f) Cruise ship terminals; 

(g) Excursion and charter boat facilities and 
terminals; 

(h) Ship berthing facilities; 

(i) Maritime construction and maritime sup- 
ply facilities; 

(j) Marine equipment and supply facilities; 

(k) A list of additional maritime land uses 
developed as part of the Waterfront Land Use 
Planning process shall be included in the "Wa- 



4357 



Waterfront Land Use 



Sec. 61.5. 



terfront Land Use Plan" and added to this Sec- 
tion. Uses added to this hst through the Water- 
front Plan process include: 

(1) Cargo shipping; 

(2) Ship repair; 

(3) Fishing industry; 

(4) Recreational boating and water use; 

(5) Feriy and excursion boats and water 
taxis; 

(6) Passenger cruise ships; 

(7) Historic ships; 

(8) Maritime support services; 

(9) Maritime offices; and 

(10) Port-priority uses. (Added by Proposi- 
tion H, 11/6/90; amended by Ord. 7-98, App. 
1/16/98) 

SEC. 61.4. ACCEPTABLE 
NON-MARITIME LAND USES. 

Acceptable non-maritime land uses include 
but are not limited to: 

(a) Parks; 

(b) Esplanades; 

(c) Wildlife habitat; 

(d) Recreational fishing piers; 

(e) Restoration of the ecology of San Fran- 
cisco Bay and its shoreline; 

(f) Transit and traffic facilities; and 

(g) A list of additional acceptable non- 
maritime land uses developed as part of the 
Waterfront Land Use Planning process shall be 
included in the "Waterfront Land Use Plan" and 
added to this Section. Uses added to this list 
through the Waterfront Plan process include: 

(1) Public access; 

(2) Open space; 

(3) Commercial uses, i.e., artist/designer stu- 
dios and galleries, assembly and entertainment 
general office, museums, parking, retail, recre- 
ational enterprises, visitor services, warehousing/ 
storage, wholesale trade/promotion; 

(4) Other uses, i.e., academic institutions, 
community facilities, general industry, power 
plants, sports facilities, transportation services; 



(5) Interim uses consistent with the provi- 
sions of the Burton Act and Public Trust. (Added 
by Proposition H, 1^6/90; amended by Proposi- 
tion B, 3/26/96; Proposition F, 6/3/97; Ord. 7-98, 
App. 1/16/98) 

SEC. 61.5. UNACCEPTABLE 
NON-MARITIME LAND USES. 

(a) Criteria for Consideration in Deter- 
mining Unacceptable Non-Maritime Land 

Uses. Criteria to be considered in making find- 
ings regarding the acceptability of any specific 
land use on the waterfront shall include but are 
not limited to: 

(1) Does the land use need to be located on 
the waterfront in order to serve its basic func- 
tion? 

(2) Is the land use compatible with existing 
or planned maritime operations on surrounding 
parcels if any? 

(3) Does the land use provide the maximum 
feasible public access? 

(4) Does the land use improve the ecological 
balance of San Francisco Bay? 

(5) Does the land use protect the waterfront's 
architectural heritage? 

(6) Does the land use represent the best 
interests of the people of the Citj^ and County of 
San Francisco and/or the State of California? 

(b) Prohibition of Unacceptable Non- 
Maritime Land Uses. No City agency or officer 
may take, or permit to be taken, any action to 
permit the development of any unacceptable 
non-maritime land use (as set forth below) on the 
waterfront. 

(c) Listing of Unacceptable Non-Mari- 
time Land Uses. The following land uses are 
found to be unacceptable non-maritime land uses: 

(1) Hotels. 

The City finds that hotels do not need to be 
located on the waterfront, and permitting their 
development on the waterfront will displace or 
preclude maritime uses; 

The City finds that waterfront hotels do not 
provide the economic benefits provided by mari- 
time employment; 



Sec. 61.5. 



San Francisco - Administrative Code 



4358 



The City finds that waterfront hotels do not 
provide high quahty pubhc access to, or permit 
restoration of, San Francisco Bay; 

The City finds that waterfront hotels do not 
serve the needs of San Francisco or its residents; 

The City therefore finds that hotels are an 
unacceptable non-maritime land use and shall 
not be permitted on the waterfront. 

(2) A list of additional unacceptable non- 
maritime land uses developed as part of the 
Waterfront Land Use Planning process shall be 
included in the "Waterfront Land Use Plan" and 
added to this Section. Uses added to this list 
through the Waterfront Plan process include: 

(i) Non-maritime private clubs; 

(ii) Residential; 

(iii) Nonaccessory parking (excludes in- 
terim parking); 

(iv) Adult entertainment; 

(v) Non-marine animal services; 

(vi) Mortuaries; 

(vii) Heliports (except for landings for emer- 
gency or medical services); 

(viii) Oil refineries; 

(ix) Mini-storage warehouses; 

(x) Sports facilities with seating capacity 
greater than 22,000, unless approved by the 
voters of San Francisco. 

(d) Grandfathering of Existing Unac- 
ceptable Non-Maritime Land Uses. This ini- 
tiative shall not prevent any unacceptable non- 
maritime land uses existing as of January 1, 
1990 from continuing in operation or expanding 
on its existing site in a manner consistent with 
all other applicable laws and regulations. At 
such time as a new land use is proposed for the 
site of a business existing as of January 1, 1990 
that new land use must meet the conditions set 
forth in this ordinance. (Added by Proposition H, 
11/6/90; amended by Ord. 7-98, App. 1/16/98) 

SEC. 61.6. DEFINITIONS. 

(a) "City agency or officer" means the Board 
of Supervisors, and all other city commissions, 
boards, officers, employees, departments or enti- 
ties whose exercise of powers can be affected by 
initiative. 



(b) "Action" includes, but is not limited to: 

(1) Amendments to the Planning Code and 
Master Plan; 

(2) Issuance of permits or entitlements for 
use by any City agency or officer; 

(3) Approval, modification or reversal of de- 
cisions or actions by subordinate City agencies or 
officers; 

(4) Approval of sales or leases pursuant to 
Sections 7.402 and 7.402-1 of the Charter of the 
City and County of San Francisco; 

(5) Approval of or amendments to Redevel- 
opment Plans; and 

(6) Any other action, including but not lim- 
ited to projects as defined in Public Resources 
Code Section 21065. 

(c) "Waterfront" means land transferred to 
the City and County of San Francisco pursuant 
to Chapter 1333 of the Statutes of 1968, as well 
as any other property which is owned by or 
under the control of the Port Commission of San 
Francisco, and which is also in any of the follow- 
ing areas: 

(1) Piers; 

(2) The shoreline band as defined in Gov- 
ernment Code Section 66610(b), between the 
Golden Gate National Recreation Area and the 
intersection of The Embarcadero and Berry Street, 
except for the area south of Jefferson Street 
between Hyde Street and Powell Street; 

(3) The shoreline band as defined in Gov- 
ernment Code Section 66610(b), in the area 
bounded by San Francisco Bay, Berry, Third, and 
Evans Streets, Hunter's Point Boulevard, and a 
straight line from the intersection of Hunter's 
Point Boulevard and Innis Avenue to the inter- 
section of Carroll Avenue and Fitch Street; and 

(4) The area south of Pier 98 in which all 
new development is subject to the Shoreline 
Guidelines, as shown on Map 8 (Eastern Shore- 
line Plan) of the Recreation and Open Space 
Element of the San Francisco Master Plan, in 
effect as of January 1, 1990. 



4359 



Waterfront Land Use 



Sec. 61.10. 



(d) "San Francisco Bay" means the area 
defined in Government Code Section 66610(a) 
which is the City and County of San Francisco, 
except for areas west of Third Street. 

(e) All references to public roads are to their 
alignment as of January 1, 1990. 

(f) "Hotel" means any use falling within the 
definition in Section 314.1(g) of the San Fran- 
cisco Planning Code in effect as of January 1, 
1990; any waterside hotel having docks to accom- 
modate persons traveling by boat; or any facili- 
ties for providing temporary or transient occu- 
pancy. This shall not include boat berths which 
are provided for temporary moorage of boats. 

(g) All other terms identifying maritime, 
acceptable non-maritime, and unacceptable non- 
maritime land uses shall be as defined in the 
Waterfront Land Use Plan. (Added by Proposi- 
tion H, 11/6/90; amended by Ord. 7-98, App. 
1/16/98) 

SEC. 61.7. IMPLEMENTATION. 

Within 180 days of the effective date of this 
ordinance, the City and County shall: 

(a) Amend its Master Plan, Planning Code, 
and other relevant plans and codes in a manner 
consistent with this ordinance; 

(b) Request and apply for conforming amend- 
ments to all applicable state and regional plans 
and regulations; and 

(c) Begin preparation of the "Waterfront Land 
Use Plan" required under Section 61.2 of this 
ordinance. (Added by Proposition H, 11/6/90) 

SEC. 61.8. SEVERABILITY. 

If any portion of this ordinance, or the appli- 
cation thereof, is hereafter determined to be 
invalid by a court of competent jurisdiction, all 
remaining portions of this ordinance, or applica- 
tion thereof, shall remain in full force and effect. 
Each section, subsection, sentence, phrase, part, 
or portion of this ordinance would have been 
adopted and passed irrespective of the fact that 
any one or more sections, subsections, sentences, 
phrases, parts or portions be declared invalid or 
unconstitutional. (Added by Proposition H, 11/6/ 
90) 



SEC. 61.9. AMENDMENT AND REPEAL. 

No part of this ordinance or the amendments 
made pursuant to Section 61.7 hereof may be 
amended or repealed except by a vote of the 
electors of the City and County of San Francisco, 
except for those additional listings provided herein 
in Sections 61.3, 61.4., and 61.5. (Added by Propo- 
sition H, 11/6/90) 

SEC. 61.10. CHAPTERING OF THIS 
ORDINANCE. 

After the adoption of this ordinance the Clerk 
of the Board of Super-visors shall assign a Chap- 
ter number to this ordinance and shall renumber 
the sections of this ordinance in an appropriate 
manner. (Added by Proposition H, 11/6/90) 



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[INTENTIONALLY LEFT BLANK] 




CHAPTER 62: DOMESTIC PARTNERSHIPS 



Sec. 62.1. Purpose. 

Sec. 62.2. Definitions. 

Sec. 62.3. Establishing a Domestic 

Partnership. 
Sec. 62.4. Ending Domestic Partnerships. 

Sec. 62.5. County Clerk's Records. 

Sec. 62.6. Legal Effect of Declaration of 

Domestic Partnership. 
Sec. 62.7. Codification. 

Sec. 62.8. Filing Fees. 

Sec. 62.9. Civil Ceremony. 

Sec. 62.10. Recognition of Domestic 

Partnerships, Civil Unions, and 

Similar Legal Relationships of 

Other Jurisdictions. 
Sec. 62.11. Amendment and Repeal. 
Sec. 62.12. Severability. 
Sec. 62.13. Domestic Partnerships Ratified 

and Approved. 

SEC. 62.1. PURPOSE. 

The purpose of this ordinance is to create a 
way to recognize intimate committed relation- 
ships, including those of same-sex couples who 
otherwise may be denied the right to marry 
under California law, and to afford to domestic 
partners, to the fullest extent legally possible, 
the same rights, benefits, responsibilities, obli- 
gations, and duties as spouses. All costs of reg- 
istration must be covered by fees to be estab- 
lished by ordinance. (Added by Proposition K, 
11/6/90; amended by Ord. 78-04, File No. 040318, 
App. 5/6/2004) 

SEC. 62.2. DEFINITIONS. 

(a) Domestic Partnership. Domestic Part- 
ners are two adults who have chosen to share one 
another's lives in an intimate and committed 
relationship of mutual caring, who live together, 
and who have agreed to be jointly responsible for 
basic living expenses incurred during the Domes- 



tic Partnership. They must sign a Declaration of 
Domestic Partnership, and establish the partner- 
ship under Section 62.3 of this chapter. 

(b) "Live Together." "Live together" means 
that two people share the same living quarters. 
It is not necessary that the legal right to possess 
the quarters be in both of their names. Two 
people may live together even if one or both have 
additional living quarters. Domestic Pai'tners do 
not cease to live together if one leaves the shared 
quarters but intends to return. 

(c) "Basic Living Expenses." "Basic living 
expenses" means the cost of basic food and shel- 
ter. It also includes the expenses which are paid 
at least in part by a program or benefit for which 
the partner qualified because of the domestic 
partnership. The individuals need not contribute 
equally or jointly to the cost of these expenses as 
long as they agree that both are responsible for 
the costs. 

(d) 'T)eclaration of Domcjstic Partner- 
ship." A "Declaration of Domestic Partnership" 
is a form provided by the County Clerk. By 
signing it, two people agree to be jointl}^ respon- 
sible for basic living expenses which they incur 
during the domestic partnership and that this 
agreement can be enforced by anyone to whom 
those expenses are owed. They also state under 
penalty of perjury thait they met the definition of 
domestic partnership when they signed the state- 
ment, that neither is married, and that they are 
not related to each other in a way which would 
bar marriage in California. The form will also 
require each partner to provide a mailing ad- 
dress. (Added by Proposition K, 11/6/90; amended 
by Ord. 78-04, File No. 040318, App. 5/6/2004) 

SEC. 62.3. ESTABLISHING A DOMESTIC 
PARTNERSHIP. 

(a) Methods. Two persons may establish a 
Domestic Partnership by either: 

(1) Presenting a signed Declaration of Do- 
mestic Partnership to the County Clerk, who will 
file it and give the partners a certificate showing 
that the Declaration was filed; or 



4371 



Sec. 62.3. 



San Francisco - Administrative Code 



4372 



(2) Having a Declaration of Domestic Part- 
nership notarized and giving a copy to the person 
who witnessed the signing (who may or may not 
be the notary). However, a domestic partnership 
formed in this manner shall not be recognized for 
purposes of San Francisco Charter Sections 
A8. 500-2 relating to the Retirement System, 
where a registered domestic partnership or cer- 
tificate of domestic partnership is required by 
law, or where a spouse would be required to 
present a marriage license. (Added by Proposi- 
tion K, 11/6/90; amended by Ord. 78-04, File No. 
040318, App. 5/6/2004) 

SEC. 62.4. ENDING DOMESTIC 
PARTNERSHIPS. 

(a) When the Partnership Ends. A Do- 
mestic Partnership ends when: 

(1) One partner sends the other a written 
notice that he or she has ended the partnership; 
or 

(2) One of the partners dies; or 

(3) One of the partners marries or the part- 
ners no longer live together. 

(b) Notice the Partnership Has Ended. 

( 1 ) To Domestic Partners. When a Domes- 
tic Partnership ends, at least one of the partners 
must sign a notice saying that the partnership 
has ended. The notice must be dated and signed 
under penalty of perjury. If the Declaration of 
Domestic Partnership was filed with the County 
Clerk, the notice must be filed with the clerk; 
otherwise, the notice must be notarized. The 
partner who signs the notice must send a copy to 
the other partner. 

(2) To Third Parties. When a Domestic 
Partnership ends, a Domestic Partner who has 
given a copy of a Declaration of Domestic Part- 
nership to any third party, (or, if that partner has 
died, the surviving member of the domestic part- 
nership) must give that third party a notice 
signed under penalty of perjury stating the part- 
nership has ended. The notice must be sent 
within 60 days of the end of the domestic part- 
nership. 



(3) Failure to Give Notice. Failure to give 
either of the notices required by this subsection 
will neither prevent nor delay termination of the 
Domestic Partnership. Anyone who suffers any 
loss as a result of failure to send either of these 
notices may sue for actual losses. (Added by 
Proposition K, 11/6/90) 

SEC. 62.5. COUNTY CLERK'S RECORDS. 

(a) Amendments to Declarations. A Part- 
ner may amend a Declaration of Domestic Part- 
nership filed with the County Clerk at any time 
to show a change in his or her mailing address. 

(b) Maintenance of County Clerk's 
Records. The County Clerk will keep a record of 
all Declarations of Domestic Partnership, amend- 
ments to Declarations of Domestic Partnership 
and all notices that a partnership has ended. The 
records will be maintained so that amendments 
and notices a partnership has ended are filed 
with the Declaration of Domestic Partnership to 
which they apply. 

(c) Filing Fees. The Board of Supervisors 
will set the filing fee for Declarations of Domestic 
Partnership and Amendments. No fee will be 
charged for notices that a partnership has ended. 
The fees charged must cover the city's cost of 
administering this ordinance. (Added by Propo- 
sition K, 11/6/90; amended by Ord. 78-04, File 
No. 040318, App. 5/6/2004) 

SEC. 62.6. LEGAL EFFECT OF 
DECLARATION OF DOMESTIC 
PARTNERSHIP. 

(a) Rights and Obligations. The rights 
and obligations of domestic partners to each 
other are those described by Section 62.2, Defi- 
nitions or otherwise granted by San Francisco 
law or policies. 

(b) Duration of Rights and Duties. If a 

domestic partnership ends, the partners incur no 
further obligations to each other. (Added by 
Proposition K, 11/6/90; amended by Ord. 78-04, 
File No. 040318, App. 5/6/2004) 



4373 



Domestic Partnerships 



Sec. 62.10. 



SEC. 62.7. CODIFICATION. 

Upon adoption, the Clerk of the Board shall 
codify this amendment into the San Francisco 
Administrative Code. (Added by Proposition K, 
11/6/90) 

SEC. 62.8. FILING FEES. 

For each filing of a Declaration of Domestic 
Partnership and each Amendment to a Declara- 
tion of Domestic Partnership the County Clerk 
shall charge a fee of $40. This fee may be 
adjusted pursuant to Section 8.33.1(b) of this 
Code to reflect changes in the relevant Con- 
sumer Price Index as determined by the Control- 
ler. (Added by Ord. 2-91, App. 1/14/91; amended 
by Ord. 155-02, File No. 021079, App. 7/12/2002; 
Ord. 83-04, File No. 040102, App. 5/20/2004) 

SEC. 62.9. CIVIL CEREMONY. 

(a) The County Clerk and any other person 
authorized by state law to perform marriage 
ceremonies are authorized to perform a civil 
ceremony solemnizing the formation of a Domes- 
tic Partnership established in accordance with 
this Chapter. Persons who either (1) present a 
signed Declaration of Domestic Partnership for 
filing to the County Clerk in accordance with 
Section 62.3(a)(1), or who (2) present a certificate 
issued by the County Clerk in accordance with 
Section 62.3(a)(1) showing that a signed Decla- 
ration of Domestic Partnership for these persons 
has been previously filed with the County Clerk, 
may request that the County Clerk or any other 
person authorized by state law to perform mar- 
riage ceremonies perform a ceremony solemniz- 
ing the formation of their Domestic Partnership. 
Each request for a Domestic Partnership cer- 
emony by the County Clerk shall be made in 
writing on a form provided by the County Clerk, 
and shall be accompanied by payment of a fee of 
$60, for a ceremony to be performed during 
regular business hours, and $100, for a ceremony 
to be performed on a weekend or holiday. These 
fees may be adjusted pursuant to Section 8.33.1(b) 
of this Code to reflect changes in the relevant 
Consumer Price Index as determined by the 
Controller. 



(b) Upon completion of the ceremony autho- 
rized by Subsection (a), the County Clerk shall 
issue a souvenir certificate memorializing the 
performance of the ceremony. If the ceremony is 
performed by a person other than the County 
Clerk, the persons entering into Domestic Part- 
nership shall obtain a Ceremony Request Form 
from the County Clerk prior to the ceremony and 
shall return such Ceremony Request Form to the 
County Clerk within, six months following the 
ceremony. The Ceremony Request Form, shall be 
sigiaed by the officiant. The County Clerk shall 
keep a record of all such ceremonies performed, 
filed with the Declaration of Domestic Partner- 
ship to which they apply. The County Clerk shall 
keep a record of Domestic Partnership ceremo- 
nies. 

(c) The County Clerk is authorized to depu- 
tize persons to solemnize Domestic Partnership 
ceremonies. Any person 18 years of age or older 
may apply to be deputized for this purpose. 
Approval of applicants and the terms of any such 
authorization shall be solely within the discre- 
tion of the County Clerk. The County Clerk shall 
charge a fee, as set forth in Section 8.33.1, for 
issuing an authorization to perform the cer- 
emony and oath. 

(d) The ceremony authorized by this Sec- 
tion shall have no legal effect upon the status of 
a Domestic Partnership established pursuant to 
this Chapter. (Added by Ord. 66-96, App. 2/9/96; 
amended by Ord. 201-99, File No. 990996, App. 
7/1/99; Ord. 155-02, File No. 021079, App. 7/12/ 
2002; Ord. 83-04, File No. 040102, App. 5/20/ 
2004) 

SEC. 62.10. RECOGNITION OF 
DOMESTIC PARTNERSHIPS, CIVIL 
UNIONS, AND SIMILAR LEGAL 
RELATIONSHIPS OF OTHER 
JURISDICTIONS. 

(a) A domestic partnership, civil union, or 
similar legal relationship lawfully entered into 
in another jurisdiction shall be entitled to all the 
rights and benefits available to domestic part- 
ners registered pursuant to this Chapter. A cer- 
tificate of such domestic partnership, civil union, 



Sec. 62.10. 



San Francisco - Administrative Code 



4374 



or similar legal relationship issued by another 
jurisdiction shall constitute sufficient proof of 
entitlement to such rights and benefits. 

(b) For purposes of this Chapter, "domestic 
partnership, civil union, or similar legal relation- 
ship" does not include a relationship between 
parents and children, ancestors and descendants 
of every degree, between brothers and sisters of 
the half as well as the whole blood, or between 
uncles or aunts and nieces or nephews, whether 
or not such relationship is recognized as a do- 
mestic partnership, civil union or similar legal 
relationship in another jurisdiction. (Added by 
Ord. 219-03, File No. 030483, App. 9/5/2003; 
amended by Ord. 78-04, File No. 040318, App. 
5/6/2004) 



March 2, 2004 between otherwise qualified per- 
sons, where the partners neither resided nor at 
least one worked in San Francisco at the time 
they established their Domestic Partnership. All 
such domestic partnerships shall be deemed valid 
as of the date the persons submitted a signed 
Declaration of Domestic Partnership to the County 
Clerk or delivered a signed, notarized copy of a 
Declaration of Domestic Partnership to the per- 
son who witnesses the signing, as provided in 
Sections 62.3(a)(1) or (a)(2). (Added by Ord. 78- 
04, File No. 040318, App. 5/6/2004) 



SEC. 62.11. AMENDMENT AND REPEAL. 

No part of this Chapter may be amended or 
repealed except by a vote of the people of the City 
and County of San Francisco, except that the 
Board of Supervisors may amend or repeal this 
Chapter as it deems necessary (1) to recognize 
domestic partnerships formed in other jurisdic- 
tions to the same extent as marriages formed in 
other jurisdictions, and (2) to afford domestic 
partners, to the fullest extent legally possible, 
the same rights, benefits, responsibilities, obli- 
gations and duties as spouses. (Added by Ord. 
78-04, File No. 040318, App. 5/6/2004) 

SEC. 62.12. SEVERABILITY. 

In the event that a court or agency of compe- 
tent jurisdiction holds that federal or state law, 
rule or regulation invalidates any clause, sen- 
tence, paragraph or section of this Chapter or the 
application thereof to any person or circum- 
stances, it is the intent of the Board of Supervi- 
sors that the court or agency sever such clause, 
sentence, paragraph or section so that the re- 
mainder of this Chapter shall remain in effect. 
(Added by Ord. 78-04, File No. 040318, App. 
5/6/2004) 

SEC. 62.13. DOMESTIC PARTNERSHIPS 
RATIFIED AND APPROVED. 

The Board of Supervisors hereby ratifies and 
approves all domestic partnerships formed after 



[The next page is 4387] 



CHAPTER 63: LIMITATIONS ON WATER USE FOR LANDSCAPING IN NEW 
DEVELOPMENTS AND LANDSCAPING RENOVATIONS 



Sec. 63.1. 
Sec. 63.2. 
Sec. 63.3. 



Sec. 63.4. 

Sec. 63.5. 

Sec. 63.6. 

Sec. 63.7. 

Sec. 63.8. 

Sec. 63.9. 

Sec. 63.10. 



Purpose and Applicability. 

Definitions. 

Submission of Landscaping 

Plan, Soil Analysis Report, and 

Irrigation Plan. 

Planting Design Restrictions. 

Irrigation System Design and 

Use Restrictions. 

Maintenance Schedule. 

Inspection. 

Approval of Application for New 

Water Service. 

Severability. 

San Francisco Water 

Department Fees. 



SEC. 63.1. PURPOSE AND 
APPLICABILITY. 

The purpose of this chapter is to promote 
efficient water use in new and renovated land- 
scaping by utilizing proper landscape design, 
management and efficient irrigation equipment 
and techniques. This ordinance also satisfies the 
requirements of the Government Code concern- 
ing Water Conservation. The following provi- 
sions are mandatory restrictions on the use of 
landscaping in new developments and landscap- 
ing renovations. Landscaping which is part of a 
registered historical site is exempt from the 
provisions of this ordinance. (Added by Ord, 
92-91, App. 3/14/91; amended by Ord. 192-00, 
File No. 001012, App. 8/11/2000) 

SEC. 63.2. DEFINITIONS. 

Whenever used in this chapter, the following 
terms shall have the meanings set forth below: 

(a) The term "landscaping" means the plant- 
ing area remaining after taking the total parcel 
less the square footage of building pad(s), drive- 
way(s), and parking areas. 



(b) The term "new development" shall mean 
the construction of ciny new building or struc- 
ture, or the enlargement of an existing structure, 
which involves the landscaping of an area larger 
than 1,000 square feet; or the creation of a City 
or privately owned landscaped area, park, com- 
munity garden or other landscaped area larger 
than 1,000 square fiset which requires a new 
irrigation water service meter from the San 
Frsmcisco Water Department. 

(c) The term "landscaping renovation" shall 
mean renovations of landscaping larger than 
1,000 square feet involving the installation of a 
new irrigation water meter to sejrve landscaping 
that has not been served by the San Francisco 
Water Department in the previous five years. 
(Added by Ord. 92-91, App. 3/14/91; amended by 
Ord. 192-00, File No. 001012, App. 8/11/2000) 

SEC. 63.3. SUBMISSION OF 
LANDSCAPING PLAN, SOIL ANALYSIS 
REPORT, AND IRRIGATION PLAN. 

Applicants for standard water service or an 
irrigation water meter shall submit a landscap- 
ing plan, soil analysis report and irrigation plan 
to the San Francisco Water Department for land- 
scaping that is a part of a new development or 
landscaping renovation. 

(a) The landscaping plan shall be drawn to 
scale, shall be drawn on not less than 11-inch by 
17-inch paper of substantial weight, and shall be 
of sufficient clarity to indicate the location, na- 
ture, plant palette, soil amendment, and extent 
of the landscaping proposed, and show in detail 
that the plantings will conform to the provisions 
of this code and all relevant laws, ordinances, 
rules and regulations. 

(b) The soils report shall characterize the 
condition of the soil present on site and any 
imported soil used in landscaping of the site. The 
soils report shall include the percentage of nitro- 
gen, phosphorus and potassium available in the 



4387 



Sec. 63.3. 



San Francisco - Administrative Code 



4388 



soil. The soils report shall identify any recom- 
mendations to correct any soil deficiencies that 
might impede the growth of the new plantings, 
and shall require a minimum of three cubic 
yards of organic matter per thousand square feet 
of landscaping to be rototilled into all landscaped 
areas. In the event that recommendations to 
correct any soil deficiencies were included in the 
soils report, the applicant must submit evidence 
of correction of the soil deficiencies to the satis- 
faction of San Francisco Water Department. 

(c) The irrigation plan shall include the 
location and type of each valve and the size and 
location of sprinkler heads connected to each 
valve. The irrigation plan shall also indicate the 
location, brand and model of the irrigation con- 
troller and the location of the irrigation system's 
automatic wet weather shut-off. The location, 
model and brand of the irrigation system's back- 
flow prevention device shall also be included in 
the irrigation plan. All backflow prevention de- 
vices shall be installed in compliance with Ar- 
ticle 12A of the San Francisco Health Code. 
(Added by Ord. 92-91, App. 3/14/91; amended by 
Ord. 192-00, File No. 001012, App. 8/11/2000; 
Ord. 192-00, File No. 001012, App. 8/11/2000) 

SEC. 63.4. PLANTING DESIGN 
RESTRICTIONS. 

The limitations set forth in this section shall 
not apply to commercial farms, community gar- 
dens on privately owned land used wholly or in 
large part for raising fruit crops, vegetables, 
herbs, or other edible plants for sale or personal 
consumption. 

(a) The total area devoted to turf grass, 
decorative water use and water-intensive plant- 
ings shall be limited to 15 percent of the total 
parcel area. The turf grass limitation excludes 
public or publicly accessible parklands or recre- 
ation areas, sports fields, golf courses, cemeter- 
ies, and children's play areas in private develop- 
ments or public areas. 

(b) Narrow strips of turf grass less than 
eight feet wide are prohibited along traffic medi- 
ans, between curbs and sidewalks, between liv- 
ing units, and similar installations. 



(c) If the planted area is located on a slope 
exceeding 10 percent, and is also within five feet 
of a hardscape or paved surface, a groundcover 
other than turf grass shall be used. 

(d) All water intensive plants shall be 
grouped together and irrigated on a separate 
cycle from low water use plants and turf grass. 

(e) Low water use plants, warm season or 
tall fescue turf grasses are encouraged under the 
conditions of this ordinance to reduce the water 
demand in the new landscaping. 

(f) A minimum depth of two inches of mulch 
shall be applied to the soil surface in non-turf 
areas after planting. 

(g) Information on low water use plants, 
irrigation techniques and educational materials 
on the efficient use of water will be provided by 
the San Francisco Water Department. (Added by 
Ord. 92-91, App. 3/14/91; amended by Ord. 192- 
00, File No. 001012, App. 8/11/2000) 

SEC. 63.5. IRRIGATION SYSTEM 
DESIGN AND USE RESTRICTIONS. 

(a) All landscaping in irrigated park areas, 
traffic medians, public areas, multi-residential 
and commercial developments, and industrial 
parks shall have separately metered automatic 
irrigation systems served by separate irrigation 
water meters installed by the San Francisco 
Water Department. 

(b) Spray or sprinkler systems are prohib- 
ited for irrigating trees. 

(c) Valves and circuits shall be separated 
based on water use requirements. Sprinkler heads 
shall have matched precipitation rates within 
each control valve circuit for uniform water ap- 
plication. 

(d) All irrigation systems shall be equipped 
with a controller capable of dual or multiple 
programming. Controllers shall be set to water 
between 5:00 p.m. and 8:00 a.m. The controller 
shall also include an automatic rain shut-off 
control. 

(e) Irrigation plans shall include schedules 
reflecting the amount of water needed to main- 
tain plant health and growth based on actual 
water needs of the plant, including climatic data 



4389 



Limitations on Water Use for Landscaping 
in New Developments and Landscaping Renovations 



Sec. 63.10. 



for the area. Separate schedules should be pro- 
vided for (1) establishing new plant material 
with an estimate of length of establishment and 
(2) maintenance of plant material after estab- 
lished. Schedules are to be created for each 
month of the watering season and shall include 
length and frequency of run times. Schedules 
shall be prominently displayed in or adjacent to 
the irrigation controller box. 

(f) All irrigation systems shall be designed 
and installed to prevent runoff and overspray 
onto hard non-irrigated areas. Installation of 
irrigation equipment must provide precipitation 
rates designed and recognized in the irrigation 
water industry to deliver high efficiency in water 
application. 

(g) In the event that recycled water be- 
comes available for landscape irrigation in San 
Francisco, said use shall be in accordance with 
all relevant laws, ordinances, rules and regula- 
tions. (Added by Ord. 92-91, App. 3/14/91; amended 
by Ord. 192-00, File No. 001012, App. 8/11/2000) 

SEC. 63.6. MAINTENANCE SCHEDULE. 

At the time of initial sale or occupancy of 
each unit in the new development the developer 
shall provide to each owner or occupant of all 
units on each parcel written instructions consis- 
tent with the manufacturer's instructions for the 
proper operation and ongoing maintenance of 
the irrigation system and controls located on 
each individual unit. In the case of a new devel- 
opment with a single owner or where common 
areas are maintained, written instruction shall 
be provided to the single owner or the owners of 
the common area. (Added by Ord. 92-91, App. 
3/14/91; amended by Ord. 192-00, File No. 001012, 
App. 8/11/2000) 

SEC. 63.7. INSPECTION. 

The San Francisco Water Department may in 
its discretion inspect landscaping and irrigation 
system installation at new developments or land- 
scaping renovation sites. The San Francisco Wa- 
ter Department shall be provided with reason- 
able access to the site to conduct such inspections. 
(Added by Ord. 92-91, App. 3/14/91; amended by 
Ord. 192-00, File No. 001012, App. 8/11/2000) 



SEC. 63.8. APPROVAL OF APPLICATION 
FOR NEW WATER SERVICE. 

Prior to obtaining approval for new water 
service for a new dejvelopment or landscaping 
renovation from the San Francisco Water Depart- 
ment, the applicant must comply with the provi- 
sions of this chapter. 

Failure to comply with the provisions of this 
chapter shall result in a denial of an application 
for new permanent water service by the San 
Fremcisco Water Department. (Added by Ord. 
92-91, App. 3/14/91; amended by Ord. 192-00, 
File No. 001012, App. 8/11/2000) 

SEC. 63.9. SEVERABILITY. 

If any section, paragraph, sentence, clause or 
phrase of this chapter or any part thereof, is for 
any reason to be held unconstitutional or invalid 
or ineffective by any court of competent jurisdic- 
tion, such decision shall not affect the validity or 
effectiveness of the remaining portions of this 
chapter, or any part thereof. The Board of Super- 
visors hereby declares that it would have passed 
each section, subsection, subdivision, paragraph, 
sentence, clause or phrase thereof irrespective of 
the fact that any one or more sections, subsec- 
tions, subdivisions, paragraphs, sentences, clauses 
or phrases be declared unconstitutional or in- 
valid or ineffective. (Added by O'rd. 92-91, App. 
3/14/91; amended by Ord. 192-00, File No. 001012, 
App. 8/11/2000) 

SEC. 63.10. SAN FRANCISCO WATER 
DEPARTMENT FEES. 

The San Francisco Water Department acting 
through its Public Utilities Commission is autho- 
rized to impose and collect fees in its discretion 
to recover the costs of implementing this chapter, 
including costs of document processing and re- 
view, inspection, consultation vdth applicants 
and administration of this chapter. (Added by 
Ord. 92-91, App. 3/14/91; amended by Ord. 192- 
00, File No. 001012, App. 8/11/2000) 



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CHAPTER 64: CITY EMPLOYEE AND CITY CONTRACTOR SAFETY AND HEALTH 



Sec. 64.1. Masonry Dry-Cutting and 

Dry-Grinding Prohibited for 
City Employees and City 
Contractors. 

SEC. 64.1. MASONRY DRY-CUTTING 
AND DRY-GRINDING PROHIBITED FOR 
CITY EMPLOYEES AND CITY 
CONTRACTORS. 

(a) Application. In order to protect the 
safety and health of City employees and City 
contractors against the effects of silicosis and 
other respiratory diseases, the following prac- 
tices set forth in Subsection 64.1(b) shall apply 
to: 

(i) All City employees; and 

(ii) City contractors engaged in construc- 
tion projects funded by the City and conducted 
pursuant to a construction contract with the City 
awarded under Chapter 6 of this Code. 

(b) Prohibition. The dry-cutting of ma- 
sonry units by means of hand-held, gas-powered 
or electrical, portable chop saws or skil saws and 
the dry-grinding of masonry materials are pro- 
hibited, except when it is determined that the 
use of water in the cutting or grinding is not 
feasible. In any instance where it is determined 
pursuant to this subsection that the use of water 
in the cutting or grinding is not feasible: 

(i) The City or City contractor shall use 
engineering and work practice controls, such as 
a vacuum with a high efficiency particulate air 
filter or other dust control system, to control the 
dust; 

(ii) Any dry cutting that occurs shall be 
done in a designated area away from all other 
workers, if possible; and 

(iii) The City or City contractor shall pro- 
vide workers with full-face respirators as part of 
a complete respiratory program that also in- 



cludes training, the proper selection of respira- 
tory cartridges and fit testing to ensure that the 
workers are able to wear the respirators. 

(c) Exception. The provisions of this sec- 
tion 64.1 shall not apply to emergency service 
personnel responding to emergency situations. 

(d) Preemption. In adopting this section 
64.1, the Board of Supervisors does not intend to 
regulate or affect the rights or authority of any 
employer or employee, other than the City, City 
employees, and City contractors, to do those 
things that are required, directed, or expressly 
authorized by federal or state law or administra- 
tive regulation. This Section 64.1 is adopted 
pursuant to Section 144(e) of the California La- 
bor Code. (Ord. 131-06, File No. 060444, App. 
6/22/2006) 



[The next page is 4409] 



4399 



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Supp. No. 1, September 2006 



CHAPTER 65: RENT REDUCTION AND RELOCATION PLAN 

FOR TENANTS INCONVENIENCED BY SEISMIC WORK 

PERFORMED PURSUANT TO CHAPTERS 14 AND 15 OF THE 

SAN FRANCISCO BUILDING CODE 



Sec. 65.1. Applicability. 

Sec. 65.2. Notice to Tenants. 

Sec. 65.3. Rent Reductions. 

Sec. 65.4. Habitable Rooms; Kitchens. 

Sec. 65.5. Rent Reduction Formula. 

Sec. 65.6. Relocation Requirements. 

Sec. 65.7. Relocation Assistance Notice. 

Sec. 65.8. Relocation Expenses. 

Sec. 65.9. Maximum Relocation Costs. 

Sec. 65.10. Rent Reductions or Relocation 
Payments. 

SEC. 65.1. APPLICABILITY. 

This Chapter shall apply to all owners of 
residential dwelling units in San Francisco who 
perform seismic strengthening work on unrein- 
forced masonry buildings pursuant to Chapters 
14 and 15 of the San Francisco Building Code. 
(Added by Ord. 220-92, App. 7/14/92) 

SEC. 65.2. NOTICE TO TENANTS. 

The owner or contractor shall post a notice on 
the tenant's door no later than 24 hours prior to 
beginning work in the tenant's dwelling unit. 
The notice shall also be delivered by first class 
mail or delivered in person or placed under the 
tenant's dwelling unit door. The notice shall 
state when a room or rooms are to be made 
available for the contractor and shall state when 
the tenant will have the room or rooms back for 
his or her use, and shall include other informa- 
tion as specified by the Director of the Rent 
Board. (Added by Ord. 220-92, App. 7/14/92) 

SEC. 65.3. RENT REDUCTIONS. 

A tenant who loses the use of one or more 
rooms during the course of the seismic strength- 
ening program is entitled to reimbursement by 
the owner for lost use. For purposes of this 



chsipter, "lost use" shall be defined as any loss of 
use of a room undergoing seismic work for the 
period stated in the contractor's notice as pro- 
vided in Section 65.2 above. The permanent loss 
of one percent or less of the habitable square 
footage of the entire dwelling unit shall be deemed 
de minimis and therefore shall not constitute 
"lost use." If the permanent loss of habitable 
square footage of the entire dwelling unit ex- 
ceeds one percent, then the Rent Board will 
determine whether or not the loss is de minimis. 
(Added by Ord. 220-92, App. 7/14/92) 

SEC. 65.4. HABITABLE ROOMS; 
KITCHENS. 

For purposes of this Chapter, "rooms" are 
those habitable rooms defined in Section 203.8 of 
the San Francisco Housing Code. A legal kitchen 
is a habitable room. (Added by Ord. 220-92, App. 
7/14/92) 

SEC. 65.5. RENT REDUCTION 
FORMULA. 

The following method shall be used to calcu- 
late rent reductions: 

(a) Total daily rent is the monthly rent 
divided by 31; 

(b) Value of a room per day is the total daily 
rent divided by the number of rooms in the 
dwelling unit; 

(c) Days of lost use equals the number of 
daj^s posted in the contractor's notice set forth in 
Section 65.2 above or the actual number of days 
that the room is unavailable for use, whichever 
is greater; 

(d) Value of a room per day times the num- 
ber of days of lost use times the number of rooms 
lost equals the rent reduction; 



4409 



Sec. 65.5. 



San Francisco - Administrative Code 



4410 



(e) For purposes of Subsection (d) above, a 
legal kitchen which has lost its use is counted as 
two rooms. For purposes of Subsection (b) above, 
a legal kitchen counts as one room; 

(f) In addition to any rent reduction autho- 
rized by Subsection (d) above, there shall be a 
rent reduction of 100 percent of the total daily 
rent after the first four hours of loss of heat, 
electricity or water in one or more usable rooms. 
There shall be a like reduction for every 24-hour 
period, or fraction thereof, until the heat, elec- 
tricity or water is restored. (Added by Ord. 
220-92, App. 7/14/92) 

SEC. 65.6. RELOCATION 
REQUIREMENTS. 

No tenant shall be required to vacate his or 
her dwelling unit during the course of the seis- 
mic strengthening of the building unless the 
owner offers the tenant one of the following: 

(a) A comparable dwelling unit in the same 
building; 

(b) A reasonably proximate, comparable 
dwelling unit in a building licensed by the City to 
provide relocation assistance and services to 
temporarily displaced tenants; or 

(c) Payment of $33 per tenant per day paid 
in advance at one-week intervals, unless the 
tenant must relocate for more than 21 days, in 
which case the payment shall be paid in advance 
at one-month intervals. (Added by Ord. 220-92, 
App. 7/14/92) 



shall offer the tenant the services of a mover or a 
payment of $400 per room. (Added by Ord. 220- 
92, App. 7/14/92) 

SEC. 65.9. MAXIMUM RELOCATION 
COSTS. 

The owner's total liability for relocation costs 
under Sections 65.6, 65.7 and 65.8 shall not 
exceed $1,500 per dwelling unit per month. (Added 
by Ord. 220-92, App. 7/14/92) 

SEC. 65.10. RENT REDUCTIONS OR 
RELOCATION PAYMENTS. 

A tenant who receives relocation assistance 
shall not receive a rent reduction for his or her 
dwelling unit under Section 65.3 above. (Added 
by Ord. 220-92, App. 7/14/92) 



SEC. 65.7. RELOCATION ASSISTANCE 
NOTICE. 

The owner shall notify the tenant at least 30 
days in advance which form of relocation assis- 
tance will be available and, if applicable, the 
estimated total cash amount. The notice shall 
state the estimated length of time the tenant will 
be displaced from his or her dwelling unit. (Added 
by Ord. 220-92, App. 7/14/92) 



SEC. 65.8. RELOCATION EXPENSES. 

At least 10 days prior to the relocation date 
on the notice in Section 65.7 above, the owner 



[The next page is 4417] 



CHAPTER 66: SEISMIC SAFETY RETROFIT PROGRAM 



Sec. 66.1. Definitions. 

Sec. 66.2. Program Regulations. 

Sec. 66.3. Amount and Use of Program 

Funds. 
Sec. 66.4. Loan Period. 

Sec. 66.5. Preservation of Housing. 

SEC. 66.1. DEFINITIONS. 

Unless otherwise indicated by the context, 
the following definitions shall govern construc- 
tion of terms in this Chapter: 

(a) "Below Market Rate Loan" shall mean a 
loan made from the proceeds of any individual 
series of bonds issued under the Program which 
shall bear an interest rate that 5delds a total 
annual return to the City that equals Va of the 
City's cost of funds for that series. 

(b) "City's cost of funds" for any individual 
series of bonds issued under the program shall 
mean the true interest cost as set forth in the 
resolution of the Board of Supervisors awarding 
that series of bonds. 

(c) "Deferred Extended Loan" is a Below 
Market Rate Loan on which repayment of prin- 
cipal and interest is deferred until the sooner to 
occur of (1) 55 years after such loan is made or (2) 
the borrower transfers title to the property whose 
improvements were financed by the proceeds of 
such loan, unless such transfer is a Permitted 
Transfer. Deferred interest shall accrue and be 
repaid at the time the principal amount of the 
Deferred Extended Loan is due. 

(d) "Deferred Standard Loan" is a Below 
Market Rate Loan on which repayment of prin- 
cipal and interest is deferred until the sooner to 
occur of (1) 20 years after such loan is made or (2) 
the borrower transfers title to the property whose 
improvements were financed by the proceeds of 
such loan, unless such transfer is a Permitted 
Transfer. Deferred interest shall accrue and be 
repaid at the time the principal amount of the 
Deferred Standard Loan is due. 



(e) "Fund" shall mean the Seismic Strength- 
ening Loan Fund, established pursuant to Ad- 
ministrative Code Section 10.117-110. 

(f) "Market Rate Loan" shall mean a loan 
made from the proceeds of any individual series 
of bonds issued under the program which shall 
bear an interest rate that, when coupled with the 
annual administrative fees charged by the City, 
yields a total annual return to the City that 
equals the City's cost of funds for that series, 
plus 100 basis points. 

(g) "Median income" shall mean the median 
income for San Francisco PMSA, adjusted for 
household size, as published from time to time by 
the United States Department of Housing and 
Urban Development, or any successor to that 
figure published by that department or any suc- 
cessor to that department. 

(h) "Permitted '^Pransfer" shall mean any 
transfer of title of a property whose improve- 
ments were financed by Below Market Rate 
Loam proceeds (1) from the borrower to a limited 
partnership or limited liability company formed 
for the tax credit syndication of such property, 
provided that the borrower or its affiliated non- 
profit public benefit corporation is the sole gen- 
eral partner or manager of such entity, or (2) 
pursuant to an option agreement entered into by 
the borrower and its general partner, manager, 
or affiliate in connection with the tax credit 
syndication of such property. 

(i) "Program" shall mean the seismic safety 
retrofit bond and losm program funded by the 
Fund and established by this Chapter. 

(]) "Seismic Strengthening" shall raean ac- 
tions taken by or on behalf of the owner of a 
building to comply with the requirements of 
Chapters 16B and 16C of the San Francisco 
Building Code, as amended from time to time. 

(k) "UMB" shall mean an unreinforced ma- 
sonry bearing wall building, the seismic strength- 
ening of which may be financed by loan from the 
fund. (Added by Ord. 1-93, App. 1/7/93; amended 
by Ord. 1-01, File No. 001968, App. 1/12/2001; 
Ord. 122-06, File No. 060386, App. 6/14/2006) 



4417 



Supp. No. 1, September 2006 



Sec. 66.2. 



San Francisco - Administrative Code 



4418 



SEC. 66.2. PROGRAM REGULATIONS. 

(a) The Board of Supervisors shall adopt by 
ordinance those regulations and rules for the 
Program that the Board of Supervisors deter- 
mines appropriate. Those regulations shall ad- 
dress matters including, but not limited to, Pro- 
gram and fund administration, nondiscrimination, 
qualification for loans, loan documentation and 
enforcement. (Added by Ord. 1-93, App. 1/7/93; 
amended by Ord. 1-01, File No. 001968, App. 
1/12/2001) 

SEC. 66.3. AMOUNT AND USE OF 
PROGRAM FUNDS. 

(a) Amaximum of $350,000,000 will be raised 
through the sale of general obligation bonds of 
the City for deposit into the fund for use in the 
Program and for payment of bond issuance costs. 

(b) A maximum of $150,000,000 of the fund 
shall be made available for Below Market Rate 
loans under the Program for Seismic Strength- 
ening of UMB's in which 50 percent or more of 
the floor area is residential and at least 70 
percent of the residential units are and will 
continue to be affordable to and occupied by a 
household whose income is at or below 60 per- 
cent of median income. 

(c) Of the $150,000,000 available for Below 
Market Rate Loans, a maximum of $60,000,000 
shall be made available for Deferred Standard 
Loans or Deferred Extended Loans under the 
Program for Seismic Strengthening of UMB's in 
which 60 percent or more of the floor area is 
residential and at least 80 percent of the resi- 
dential units are and will continue to be afford- 
able to and occupied by a household whose in- 
come is at or below 40 percent of median income. 

(d) A maximum of $200,000,000 of the fund 
shall be made available for Market Rate Loans 
for Seismic Strengthening of UMB's not qualify- 
ing for loans under Subsections 66.3(b) or 66.3(c). 

(e) To the extent legally required for comple- 
tion of the Seismic Strengthening of or to permit 
occupancy of a building, up to 25 percent of the 
proceeds of any loan funded under the Program 
may be spent on improvements to protect the life 



or safety of or to provide disability access for 
occupants of that building. (Added by Ord. 1-93, 
App. 1/7/93; amended by Ord. 1-01, File No. 
001968, App. 1/12/2001; Ord. 122-06, File No. 
060386, App. 6/14/2006) 

SEC. 66.4. LOAN PERIOD. 

All loans made under the Program shall be 
fully amortized over a period of 20 years, pro- 
vided that all principal and interest payments 
under a Deferred Standard Loan shall be repaid 
in a single lump sum at the end of the Deferred 
Standard Loan period and all principal and 
interest pajmients under a Deferred Extended 
Loan shall be repaid in a single lump sum at the 
end of the Deferred Extended Loan period. (Added 
by Ord. 1-93, App. 1/7/93; amended by Ord. 1-01, 
File No. 001968, App. 1/12/2001; Ord. 122-06, 
File No. 060386, App. 6/14/2006) 

SEC. 66.5. PRESERVATION OF 
HOUSING. 

(a) Any loan, including a Market Rate Loan, 
used to finance Seismic Strengthening of a resi- 
dential structure containing luiits rented to house- 
holds specified in Section 50079.5 of the Califor- 
nia Health and Safety Code before strengthening 
shall be subject to a regulatory agreement and 
related documents that will ensure that the 
number of those units in the structure will not be 
reduced and will remain available at affordable 
rents pursuant to Section 50053 of the California 
Health and Safety Code (1) for as long as any 
portion of the loan is unpaid, (2) in the case of 
Below Market Rate Loans other than Deferred 
Extended Loans, repaid in full in less than 20 
years, for at least 20 years, and (3) in the case of 
Deferred Extended Loans, repaid in full in less 
than 55 years, for at least 55 years. 

(b) In the case of Below Market Rate Loans 
other than Deferred Extended Loans, the Regu- 
latory Agreement and related documents will 
include provisions to assure the continued afford- 
ability and occupancy, for at least 20 years, by 
households as described in Section 66.3, and 
such other restrictions and requirements as 
deemed appropriate by the Board of Supervisors 
or the entity designated as administrator of the 



Supp. No. 1, September 2006 



4419 Seismic Safety Retrofit Program Sec. 66.5. 



Program. In the case of Deferred Extended Loans, 
the Regulatory Agreement and related docu- 
ments will include provisions to assure contin- 
ued affordability and occupancy, for at least 55 
years, by households as described in Section 
66.3, and such other restrictions and require- 
ments as deemed appropriate by the Board of 
Supervisors or the entity designated as admin- 
istrator of the Program. 

(c) In addition to any other restriction on 
the reduction of the number of residential units 
set forth in this Chapter, any loan made under 
the Program that is used to finance Seismic 
Strengthening shall be subject to a regulatory 
agreement and related documents that will en- 
sure that the number of residential units, if any, 
in the structure being strengthened will not be 
reduced for as long as any portion of the loan is 
unpaid except if one of the following conditions is 
met at the time that the loan is made: (1) 
compliance with engineering requirements ne- 
cessitates a reduction in the number of residen- 
tial units; (2) the loss of units is required to 
correct substandard housing conditions as de- 
scribed in the Program regulations; or (3) the 
structure is an owner-occupied mixed-use build- 
ing with four or fewer residential units. (Added 
by Ord. 1-93, App. 1/7/93; amended by Ord. 1-01, 
File No. 001968, App. 1/12/2001; Ord. 122-06, 
File No. 060386, App. 6/14/2006) 

Sec. 66.6. 

(Added by Ord. 1-93, App. 1/7/93; amended by 
Ord. 287-96, App. 7/12/96; repealed by Ord. 1-01, 
File No. 001968, App. 1/12/2001) 



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Supp. No. 1, September 2006 



CHAPTER 66A: SEISMIC SAFETY LOAN PROGRAM 



Sec. 66A.1. Purpose. 

Sec. 66A.2. Definitions. 

Sec. 66A.3. Program Personnel. 

Sec. 66A.4. Lending Criteria. 

Sec. 66A.5. Documentation for Seismic 

Safety Loans. 
Sec. 66A.6. Security for Seismic Safety 

Loans. 
Sec. 66A.7. Subordination of Liens Securing 

Seismic Safety Loans. 
Sec. 66A.8. Permissible Loan Amounts. 
Sec. 66A.9. Eligible Uses of Loan Proceeds. 

Sec. 66A.10. Bidding Requirements; 

MinorityAVomen Business 

Enterprises. 
Sec. 66A.11. Loan Application Process. 
Sec. 66A.12, Initial Review of Loan 

Applications by Financial 

Consultant. 
Sec. 66A.13. Unreinforced Masonry Building 

Loan Committee. 
Sec. 66A.14. Loan Committee Decisions. 
Sec. 66A.15. Close of Seismic Safety Loan. 
Sec. 66A.16. Loan Disbursements and 

Monitoring Duties of Financial 

Consultant. 
Sec. 66A.17. Loan Servicing. 
Sec. 66A.18. Base Wages. 
Sec. 66A.19. Prevailing Wages. 
Sec. 66A.20. Property/Liability Insurance. 
Sec. 66A.21. Health Insurance. 
Sec. 66A.22. Economically Disadvantaged 

Hire Requirement. 
Sec. 66A.23. Monitoring for Compliance with 

Regulatory Agreements. 
Sec. 66A.24. Program Regulations. 
Sec. 66A.25. Program Management. 
Sec. 66A.26. Affirmative Action. 



SEC. 66A.1. PURPOSE. 

The purpose of this Chapter 66A is to imple- 
ment a seismic safety loan program ("Program") 
by describing the conditions under which the 
City and County of San Francisco ("City") may 
lend taxable general obligation bond proceeds to 
building owners to finance the seismic retrofit of 
unreinforced masonry buildings. In addition to 
the requirements of Administrative Code Chap- 
ter 66 and this Chapter 66A, the Program shall 
also be subject to all federal, state and local laws 
applicable to the issuance of bonds related to the 
Program, the making of loans, specific seismic 
retrofit standards, and any other applicable mat- 
ters. (Added by Ord. 100-94, App. 3/11/94) 

SEC. 66A.2. DEFINITIONS. 

Unless otherwise defined below, capitalized 
terms used in this Chapter 66A shall have the 
meanings set forth in this Chapter 66A or in 
Administrative Code Chapter 66. 

(1) "Annual Debt Service" means the pro- 
jected annual sum of all pa3rments due on obli- 
gations secured by the Property, as defined be- 
low, for the 12 months following the completion 
of Seismic Strengthening to be financed by a 
Seismic Safety Loan, as defined below, including 
any payments which will be due on the proposed 
Seismic Safety Loan, but shall not include depre- 
ciation of the Property. 

(2) "Annual Net Operating Income" means 
the annual sum of all gross incorae estimated to 
be generated by the Property, as defined below, 
during the 12 months following the completion of 
Seismic Strengthening to be financed by a Seis- 
mic Safety Loan, as defined below, less the sum 
of all operating expenses for the Property during 
such period. 

(3) "Applicant" means an applicant for a 
Seismic Safety Loan, as defined below. 



4427 



Supp. No. 1, September 2006 



Sec. 66A.2. 



San Francisco - Administrative Code 



4428 



(4) "Bolts Plus" means the retrofit standard 
defined in San Francisco Building Code Section 
1603B and permitted under San Francisco Build- 
ing Code Section 1609C.2. 

(5) "Bond Proceeds" means the proceeds of 
taxable general obligation bonds to be issued by 
the City to finance the Program, including inter- 
est on such proceeds. 

(6) "Borrower" means a recipient of a Seis- 
mic Safety Loan, as defined below. 

(7) "Building Code" means the San Fran- 
cisco Building Code, as it may be amended from 
time to time. 

(8) "Debt Service Coverage Ratio" shall be 
the ratio of Annual Net Operating Income on the 
Property, as defined below, to Annual Debt Ser- 
vice on the Property. 

(9) "General Procedure" means the retrofit 
standard defined in Building Code Section 1610C. 

(10) "Loan Committee" means the Unrein- 
forced Masonry Building Loan Committee, as 
further defined in Section 66A.13. 

(11) "Loan to Value Ratio" means the ratio 
of the outstanding principal balance of all financ- 
ing secured by the Property, as defined below, 
including the proposed Seismic Safety Loan, as 
defined below, to the Market Value of the Prop- 
erty 

(12) "Market Value" of the Property, as de- 
fined below, means the value of the Property as 
determined by an appraiser approved by the City 
who possesses a State of California appraisal 
license, certified general, based on both histori- 
cal data and projected income and value follow- 
ing completion of Seismic Strengthening, as de- 
fined in Administrative Code Section 66.1(j). 
Such appraisal shall be dated no earlier than 90 
days prior to the date of application for a Seismic 
Safety Loan, as defined below. The Applicant 
shall be fully responsible for the cost of obtaining 
such an appraisal. The Program Administrator, 
as defined below, shall provide prospective Ap- 
plicants with a list of preapproved appraisers. 
The Applicant may obtain the prior written ap- 
proval of the Program Administrator in the event 
the Applicant wishes to utilize an appraiser 
other than as specified on such list. 



(13) "Program Administrator" means a rep- 
resentative of the Mayor's Office of Housing, as 
specified in Section 66A.25. 

(14) "Program Regulations" means regula- 
tions to be developed by the Program Adminis- 
trator, which will address those issues specified 
in this Chapter 66A, in addition to any other 
matters deemed necessary by the Program Ad- 
ministrator in order to implement Chapters 66 
and 66A. 

(15) "Property" means an unreinforced ma- 
sonry bearing wall building ("UMB"), as defined 
in Administrative Code Section 66. l(k), together 
with the legal parcel(s) of real property on which 
the UMB is located. 

(16) "Regulatory Agreement" means an 
agreement to be executed by the Property owner 
and recorded against the Property in order to 
restrict subsequent use of the Property, as fur- 
ther described in Administrative Code Section 
66.5 and in this Chapter 66 A. 

(17) "Section 3403.6" means the retrofit stan- 
dard defined in Building Code Section 3403.6. 

(18) "Seismic Safety Loan" means a loan 
made pursuant to Administrative Code Chapters 
66 and 66A, and includes Below Market Rate 
Loans, Deferred Extended Loans, Deferred Stan- 
dard Loans, and Market Rate Loans, each as 
defined in Administrative Code Section 66.1. 

(19) "Special Procedure" means the retrofit 
standard defined in Building Code Section 1611C. 
(Added by Ord. 100-94, App. 3/11/94; amended by 
Ord. 287-96, App. 7/12/96; Ord. 2-01, File No. 
001969, App. 1/12/2001; Ord. 122-06, File No. 
060386, App. 6/14/2006) 

SEC. 66A.3. PROGRAM PERSONNEL. 

In addition to the Program Administrator 
and Loan Committee, as further described in 
this Chapter 66A, the following individuals or 
entities shall assist in the operation of the Pro- 
gram. Each individual/entity shall be selected 
through a request for proposals process to be 
conducted by the UMB Program Administrator. 
The City shall enter into agreements to obtain 



Supp. No. 1, September 2006 



4429 



Seismic Safety Loan Program 



Sec. 66A.4. 



the services of such individuals and/or entities 
according to apphcable City procedures and sub- 
ject to all required City approvals. 

(1) Financial Consultant. The financial 
consultant ("Financial Consultant") shall per- 
form the duties described in Sections 66A.12 and 
66A.16, below. 

(2) Loan Servicer. The Loan Servicer shall 
be a private lender and/or loan servicer ("Loan 
Servicer"). The duties of the Loan Servicer are 
described in Section 66A.17, below. (Added by 
Ord. 100-94, App. 3/11/94; amended by Ord. 
237-96, App. 6/11/96; Ord. 2-01, File No. 001969, 
App. 1/12/2001) 

SEC. 66A.4. LENDING CRITERLV. 

Applicants must satisfy the criteria de- 
scribed in Section 66A.4(1), at a minimum, in 
order to be eligible for consideration for receipt of 
a Seismic Safety Loan. The Loan Committee 
may also consider those additional factors de- 
scribed in Section 66A.4(2) in determining whether 
to approve ci Seismic Safety Loan. In no event 
will an Applicant's satisfaction of the criteria in 
this Section 66A.4 be deemed to guarantee ap- 
proval of a Seismic Safety Loan for the Appli- 
cant. 

(1) Underwriting Criteria. 

(a) Below Market Rate Loans. Each Ap- 
plicant for a Below Market Rate Loan must show 
that the Property to be rehabilitated satisfies 
one of the following criteria: 

(i) The Loan to Value Ratio of the Property 
shall not exceed 95 percent, and the Property 
shall have a minimum Debt Service Coverage 
Ratio of l.lx; or 

(ii) The Loan to Value Ratio of the Property 
shall not exceed 90 percent, and the Property 
shall have a minimum Debt Service Coverage 
Ratio of 1.05x. 

(b) Deferred Extended Loans and De- 
ferred Standard Loans. Each Applicant for a 
Deferred Extended Loan or a Deferred Standard 
Loan must show that the Property to be rehabili- 
tated satisfies the following criteria: The Loan to 
Value Ratio of the Property shall not exceed 95 
percent. 



(c) Market Rate Loans. Each Applicant 
for a Market Rate Loan must show that the 
Property to be rehabilitated satisfies one of the 
following criteria: 

(i) The Loan to Value Ratio shall not exceed 
95 percent, and the Property shall have a mini- 
mum Debt Service Coverage Ratio of l.lx; or 

(ii) The Loan to Value Ratio shall not ex- 
ceed 90 percent, and the Property shall have a 
minimum Debt Service Coverage Ratio of 1.05x. 

(2) Other Lending Criteria. In addition 
to the underwriting criteria specified in Section 
66A.4(1), above, the Loan Committee shall evalu- 
ate each of the follov/ing factors for each Appli- 
cant, as these factors are more fully addressed in 
the Program Regulations: 

(a) Creditworthiness. The Loan Commit- 
tee shall evaluate an Applicant's credit history 
and likelihood of miaking timely loan repay- 
ments. 

(b) Net Worth. The Loan Committee shall 
examine an Applicant's net worth and income. 

(c) Experience.. The Loan Committee shall 
determine whether an Applicant has experience 
with rehabilitation projects, and whether such 
experience may contribute to the likelihood of 
timiely completion of the Seismic Strengthening 
and repayment of the Seismic Safety Loan. 

(d) Scope of Work. The Loan Committee 
shall assess the degree to which the proposed 
scope and timing of the Seismic Strengthening 
will address the needs of the Property and the 
surrounding neighborhood with regard to habit- 
ability and marketability of the Property. 

(e) Additional Factors. In the event a 
Property does not meet the Loan to Value Ratio 
and/or Debt Service Coverage Ratio Require- 
ments set forth above, the Loan Committee may 
consider the following factors in determining 
whether to approve a Seismic Safety Loan, in the 
following order of priority: 

(i) The Applicant's ability and willingness 
to repay the Seismic Safety Loan, including the 
availability of additional real property collateral 
as described in Section 66A.6(2), and the avail- 
ability of personal or corporate guaranties, as 
described in Section 66A.6(2); 



Supp. No. 1, September 2006 



Sec. 66A.4. 



San Francisco - Administrative Code 



4430 



(ii) The extent to which proposed rehabili- 
tation costs may be reduced in order to permit 
the AppHcant to quahfy for a lesser Seismic 
Safety Loan amount; and 

(iii) The extent to which existing lenders of 
financing secured by the Property have agreed to 
subordinate the liens of their deeds of trust or 
other encumbrances to the lien of the deed of 
trust ("Deed of Trust") in favor of the City in 
connection with a Seismic Safety Loan. (Added 
by Ord. 100-94, App. 3/11/94; amended by Ord. 
2-01, File No. 001969, App. 1/12/2001; Ord/ 122- 
06, File No. 060386, App. 6/14/2006) 

SEC. 66A.5. DOCUMENTATION FOR 
SEISMIC SAFETY LOANS. 

(1) Each Seismic Safety Loan shall be evi- 
denced by a loan agreement, a promissory note, a 
Deed of Trust, a Regulatory Agreement (where 
applicable), escrow instructions, and any other 
documents reasonably required to evidence the 
Seismic Safety Loan and adequately protect the 
City's interest in the Applicant's completion of 
the Seismic Strengthening and repajrment of the 
Seismic Safety Loan, The form and content of 
such loan documents shall be reviewed and ap- 
proved by the City Attorney's Office and the 
Program Administrator. 

(2) As a condition to the close of any Seismic 
Safety Loan, the Deed of Trust and Regulatory 
Agreement (where applicable) shall be recorded 
as liens against the Property, subject only to 
those encumbrances approved by the City. The 
loan documents shall provide that a Seismic 
Safety Loan shall, at the City's option, be due 
and payable immediately upon the close of es- 
crow of any sale or transfer of the Property. The 
City may permit subsequent owners of the Prop- 
erty or transferees of the Borrower to assume an 
existing Seismic Safety Loan, provided that the 
Property and the subsequent owners or transfer- 
ees continue to meet the criteria set forth in 
Section 66A.4, and that any such subsequent 
owner or transferee expressly agrees in writing 
to assume all of the Borrower's obligations under 
the Seismic Safety Loan documents. 



(3) A default under any document(s) evidenc- 
ing a Seismic Safety Loan, including but not 
limited to a Regulatory Agreement, shall consti- 
tute a default under the loan agreement and 
allow the City to pursue any remedies available 
at law or in equity. (Added by Ord. 100-94, App. 
3/11/94) 

SEC. 66A.6. SECURITY FOR SEISMIC 
SAFETY LOANS. 

(1) Deed of Trust. As security for Borrower's 
obligations in connection with the Seismic Safety 
Loan, the Borrower shall execute and deliver a 
deed of trust and assignment of rents ("Deed of 
Trust") on the Property in favor of the City. As a 
condition to the close of the Seismic Safety Loan, 
the City shall record the Deed of Trust against 
the Property, subject only to those liens and 
encumbrances approved in writing by the City. 

(2) Additional CollateraL In the event an 
Applicant meets the other lending criteria speci- 
fied in Section 66A.4(2), above, but does not meet 
the Loan to Value Ratio or Debt Service Cover- 
age Ratio requirements set forth in Section 
66A.4(1), above, the Loan Committee may choose 
to accept any of the following collateral, in addi- 
tion to the Deed of Trust: 

(a) Personal Guaranty. In cases where (i) 
the Applicant is an organization exempt from 
taxation under the Internal Revenue Code of the 
United States and the Revenue and Taxation 
Code of the State of California as a bona fide 
fraternal, charitable, benevolent, religious or other 
nonprofit organization; and (ii) the Property does 
not meet the underwriting criteria set forth in 
Section 66A.4(1), above, then the Loan Commit- 
tee may choose to accept, in addition to the Deed 
of Trust, a personal, corporate or other guaranty 
issued for the benefit of the City from an indi- 
vidual or entity unrelated to the Applicant ("Guar- 
anty") to guaranty the Borrower's obligations in 
connection with the Seismic Safety Loan. The 
Guaranty shall be in form and substance satis- 
factory to the Loan Committee. The Loan Com- 
mittee may request any information required to 
support the creditworthiness of the individual or 
party proposing to issue the Guaranty. 



Supp. No. 1, September 2006 



4431 



Seismic Safety Loan Program 



Sec. 66A.9. 



(b) Additional Real Property Security. 

The Loan Committee may accept additional real 
property security to be subject to a lien of a Deed 
of Trust, Such real property must be located 
within the nine-county San Francisco Bay Area. 
The Loan to Value Ratio of such additional real 
property shall not exceed 75 percent. (Added by 
Ord. 100-94, App. 3/11/94; amended by Ord. 2-01, 
File No. 001969, App. 1/12/2001) 

SEC. 66A.7. SUBORDINATION OF LIENS 
SECURING SEISMIC SAFETY LOANS. 

(1) The City shall negotiate with other ex- 
isting and proposed lien holders and other hold- 
ers of obligations secured by the Property in 
order to gain a superior position for the lien of 
the Deed of Trust and the Regulatory Agree- 
ment, if applicable. 

(2) The City may, in its discretion, agree to 
subordinate the lien of the Deed of Trust to 
subsequent lenders providing financing for the 
rehabilitation of the Property, so long as the 
Property continues to meet the underwriting 
criteria set forth in Section 66A.4(1), above. 
(Added by Ord. 100-94, App. 3/11/94; amended by 
Ord. 2-01, File No. 001969, App. 1/12/2001) 

SEC. 66A.8. PERMISSIBLE LOAN 
AMOUNTS. 

(1) Determination. The City's Depart- 
ment of Building Inspection and such other City 
departments as determined by the Program Ad- 
ministrator and the Loan Committee shall work 
with the Program Administrator to determine 
permissible cost ranges for seismic rehabilita- 
tion activities and, from that information, pro- 
posed maximum loan amounts for individual 
Seismic Safety Loans, based on the type of build- 
ing and the work necessary to complete the 
Seismic Strengthening. The Program Adminis- 
trator shall periodically review and, as neces- 
sary, amend these amounts during the Program. 

(2) Retrofit Standards Used to Deter- 
mine Permissible Amounts. 

(a) Seismic Safety Loans may be used to 
finance the minimum level of Seismic Strength- 
ening work required by Chapters 14 and 15 of 
the Building Code, subject to Subsections (b) and 
(c), below. 



(b) In the event a Property v/ould qualify for 
Bolts Plus but the Applicant elects to comply 
with the Special Procedure, the amount of the 
Seismic Safety Loan, shall be calculated based 
upon the sum necessary to comply with the 
Special Procedure. 

(c) In the event a Property would qualify for 
the General Procedure, and the Applicant dem- 
onstrates that the cost of complying with Section 
104(f) would be less than or equal to the cost of 
complying with the General Procedure, the 
amount of the Seismic Safety Loan shall be 
calculated based upon the sum necessary to 
comply with Section 104(f). 

(3) Proposed Loans in Excess of Permis- 
sible Amounts. The Loan Committee may, in its 
discretion, approve Seismic Safety Loans in ex- 
cess of the amounts determined in Section 
66A.8(1), above, after receiving special review 
and approval by the Loan Committee. (Added by 
Ord. 100-94, App. 3/11/94; amended by Ord. 2-01, 
File No. 001969, App. 1/12/2001) 

SEC. 66A.9. ELIGIBLE USES OF LOAN 
PROCEEDS. 

(1) Seismic Rehabilitation Costs. The 

principal amount of any Seismic Safety Loan 
may be used to pay the following costs, provided 
such costs are necessary for seismic safety rea- 
sons or legally required for completion of Seismic 
Strengthening or occupancy of a UMB: 

(a) Seismic Strengthening of UMBs; 

(b) Soft costs directly associated with the 
Seismic Strengthening, including but not limited 
to architectural fees, engineering fees, develop- 
ment of tenant protection plans, loan packaging 
fees, permit fees and escrow and closing fees and 
costs; 

(c) Replacement and/or restoration of fin- 
ishes disturbed during performance of the Seis- 
mic Strengthening to their condition existing as 
of the date of commencement of the Seismic 
Strengthening; 

(d) Remediation or reduction of toxic mate- 
rials disturbed during Seismic Strengthening in 
accordance with applicable federal. State or local 
laws; and 



Supp. No. 1, September 2006 



Sec. 66A.9. 



San Francisco - Administrative Code 



4432 



(e) Residential tenant relocation costs, as 
required by applicable laws. 

(2) Life/Safety Code Compliance and Dis- 
ability Access. Up to 25 percent of the seismic 
construction hard costs portion of any Seismic 
Safety Loan may be used, to the extent legally 
required for completion of the Seismic Strength- 
ening of or to permit occupancy of a Property, to 
pay costs of improvements to the Property to 
protect the life or safety of or to provide legally 
required disability access for occupants of the 
Property In the event the Loan Committee de- 
termines that greater than 25 percent of the 
amount of a Seismic Safety Loan is generally 
requested to complete the work described in this 
Section 66A.9(2), the Loan Committee may rec- 
ommend to the Board of Supervisors that this 
Section be amended to increase the 25 percent 
cap. (Added by Ord. 100-94, App. 3/11/94; amended 
by Ord. 237-96, App. 6/11/96; Ord. 2-01, File No. 
001969, App. 1/12/2001) 

SEC. 66A.10. BIDDING 
REQUIREMENTS; MINORITY/WOMEN 
BUSINESS ENTERPRISES. 

(1) Prior to applying for a Seismic Safety 
Loan, each Applicant shall obtain a minimum of 
three qualified bids for performance of the work 
to be financed by a Seismic Safety Loan. All three 
bids must be included with an application. At 
least one of those bids shall be from a contractor 
and/or engineer, whichever type of professional 
with whom the Applicant intends to enter into a 
contract for performance of Seismic Strengthen- 
ing, which has been certified by the City's Hu- 
man Rights Commission, pursuant to Adminis- 
trative Code Section 12D.A.6(B)(1), as an MBE 
or WBE as defined in Administrative Code Sec- 
tion 12D.A. In cases where a Borrower wishes to 
enter into a negotiated bid with a contractor, the 
Borrower must demonstrate to the Program Ad- 
ministrator that a good faith effort was made to 
notify MBE and WBE contractors of the work to 
be performed. The Program Administrator shall 
make available to Applicants a list of certified 
MBEs and WBEs from which such bids may be 



solicited. In no event shall the Applicant be 
required to pay any bid preparation fee to the 
MBE or WBE. 

(2) It is the goal of the Board of Supervisors 
that 25 percent of all Seismic Safety Loan pro- 
ceeds disbursed in the Program be paid by Bor- 
rowers to contractors who are MBEs and/or 
WBEs. (Added by Ord. 100-94, App. 3/11/94; 
amended by Ord. 2-01, File No. 001969, App. 
1/12/2001) 

SEC. 66A.11. LOAN APPLICATION 
PROCESS. 

Loan application information and forms may 
be obtained from the Program Administrator, or 
such other location or individual as may be 
determined by the Program Administrator. The 
application package will indicate procedures for 
returning completed applications. (Formerly Sec. 
66A.12; added by Ord. 100-94, App. 3/11/94; 
renumbered by Ord. 2-01, File No. 001969, App. 
1/12/2001) 

(Former Sec. 66A.11 was repealed by Ord. 2-01.) 

SEC. 66A.12. INITIAL REVIEW OF LOAN 
APPLICATIONS BY FINANCIAL 
CONSULTANT. 

Applicants shall submit completed applica- 
tions to the Program Administrator for an initial 
review of consistency with program require- 
ments. The Program Administrator shall then 
take one of the following actions: 

(1) Return any incomplete or insufficient 
loan application to the Applicant, together with a 
brief explanation of any additional information 
needed to complete the application; or 

(2) Transmit the complete loan application 
to the Financial Consultant for review. The Fi- 
nancial Consultant would then (a) assess the 
application to make sure that it meets the mini- 
mum criteria set forth in Sections 66A.4, and (b) 
develop a summary of the loan package that will 
aid the review and discussion of the application 
by the Loan Committee and (c) recommend ap- 
proval or disapproval of the loan, and provide the 
basis for such recommendation. The Program 
Administrator shall provide copies of the Finan- 



Supp. No. 1, September 2006 



4433 



Seismic Safety Loan Program 



Sec. 66A.16. 



cial Consultant's recommendation to the Appli- 
cant at least five days prior to consideration of 
the application by the Loan Committee. (Former 
Sec. 66A.13; added by Ord. 100-94, App. 3/11/94; 
amended and renumbered by Ord. 2-01, File No. 
001969, App. 1/12/2001) 

(Former Sec. 66A,12 was renumbered as Sec. 
66A.11 by Ord. 2-01.) 

SEC. 66A.13. UNREINFORCED 
MASONRY BUILDING LOAN 
COMMITTEE. 

(1) Members. The Loan Committee shall 
consist of the following members as appointed by 
the Director of the Mayor's Office of Housing, 
each of whom shall be voting members: 

(a) The Program Administrator or his/her 
designee; 

(b) A financial expert or mortgage broker; 

(c) A real estate appraiser or other commer- 
cial real estate expert; 

(d) A finance expert, with experience in 
affordable housing development, from the Mayor's 
Office of Housing or the successor to that office, 
or if no such office exists, from a City department 
with experience in housing development and 
finance; and 

(e) An engineering cost estimator. 

(2) Quorum. Three members of the Loan 
Committee shall constitute a quorum for the 
purposes of accomplishing the duties set forth in 
Subsection (3) below. A simple majority vote of 
three members shall be necessary to approve any 
loan application or take any other action. All 
decisions of the Loan Committee shall be final. 

(3) Meetings. The Loan Committee shall 
meet on a monthly basis at a time and place 
determined by the Loan Committee. The Pro- 
gram Administrator may cancel the required 
monthly meeting if no applications have been 
submitted for approval since the previous monthly 
meeting. All meetings shall be noticed in accor- 
dance with Eipplicable State and local law. 



(4) Duties. The Loan Comraittee shall per- 
form the following duties: 

(a) The Loan Committee shall meet on a 
monthly basis at times and places specified by 
the Loan Committee, and deterraine whether to 
approve or disapprove a loan application. In the 
case of disapproval, the Loan Committee may 
indicate the reasons for such disapproval, and 
the Applicant may choose to reapply in accor- 
dance with the requirements of this Chapter 
66A. (Formerly Sec. 66A.14; added by Ord. 100- 
94, App. 3/11/94; amended by Ord. 287-96, App. 
7/12/96; amended and renumbered by Ord. 2-01, 
File No. 001969, App. 1/